In recent years the big five banks kept their interest rates the same. Now some difference is creeping in. St George Bank now has Australia’s variable mortgage rate at around 10 per cent. ANZ and Westpac come in at 9.37 per cent, NAB at 9.36 per cent. Commonwealth Bank is staying put at 9.32 per cent. But in a surprise, the Commonwealth Bank lags its rivals, with a standard variable home loan rate of 9.32 per cent.
The Commonwealth, which is now taking on the description, "Determined to be different" is putting money behind its recent advertising campaign by allowing its rivals to move ahead on interest rates.
The CBA said when it last raised interest rates in March by 35 basis points – 10 basis points more than the RBA: “We are still maintaining a balance between the needs of shareholders and customers by continuing to absorb a significant portion of the additional costs being incurred."
Despite raising interest rates above RBA movements this year, banks are still pulling in record profits.
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