The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price underperformed in June despite the bank's silence.
As of the final close of last month, the ANZ share price was $22.03, 12.02% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) slipped 8.9% last month while the S&P/ASX 200 Financials Index (ASX: XFJ) plunged 11.8%.
Let's take a closer look at what might have weighed on the ASX 200 banking giant last month.
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What weighed on the ANZ share price last month?
The ANZ share price underperformed the broader market last month. Though, it did better than many of its ASX 200 banking peers.
The share prices of its fellow 'big four' banks Commonwealth Bank of Australia (ASX: CBA) and National Bank of Australia Ltd (ASX: NAB) slipped 13.4% and 12.4% respectively. Meanwhile, that of Westpac Banking Corp (ASX: WBC) fell 18.3%.
Their suffering came amid rising interest rates and high inflation in June.
The Reserve Bank of Australia (RBA) hiked interest rates for a second consecutive month in early June. It lifted the nation's benchmark cash rate by 0.5% to sit at 0.85%.
Of course, rising rates allow banks to reprice their loans and potentially increase their bottom line.
However, it also increases the risk that mortgage holders might default on their loans. Rising rates could also cause housing prices to fall, thereby lessening the value of a bank's loan book.
Sadly, the ANZ share price was well and truly in the red before June took its toll. The bank's share price has slipped 21.4% since the start of the year. For context, the ASX 200 is down around 12.7% year to date.
