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Vic bank blaze not act of terror: Andrews

AAP logoAAP 20/11/2016 Helen Velissaris

Victoria's Premier Daniel Andrews says an arson attack in which a man set himself on fire and injured 26 people in a Melbourne bank was not an act of terror and shouldn't be used as a "political weapon".

Calling the incident an isolated event, Mr Andrews said there was no suggestion the suspect was motivated by terrorist ideologies and warned of people using the "tragedy" as political fuel.

"It's not a commentary and it ought not be used as a political weapon by anybody who finds fault with any of the policy settings that we have at the moment," he told reporters on Sunday.

His comments came as far-right nationalist groups planned a rally in Melbourne to celebrate the rise of Donald Trump and "right wing governments ... all over Europe".

The 21-year-old suspect is believed to be an asylum seeker from Myanmar who had recently become homeless.

It's been reported money troubles and a welfare payment issue influenced the man to set the Commonwealth Bank branch in Springvale alight on Friday.

Acquaintances of the man said he was battling mental health issues in the lead-up to the incident.

After Mr Andrews addressed the media Donald Trump supporters, including members of the True Blue Crew and the United Patriots Front, were beginning to congregate at Victoria's parliament.

Anti-Trump groups are also set to counter-rally, claiming that the supporters are using the election of Trump to promote racism.

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