 CBA raises interest rates
The Commonwealth Bank of Australia is raising some rates by 10 basis points, pointing to higher costs of funding.
The banks standard variable loan will rise up to sit at 5.74 per cent, from the current 5.64 per cent, effective Monday June 15.
Interest rates for a range of fixed mortgage products and its Residentially Secured Better Business Loans will also rise by 10 basis points from Monday.
Borrowers already on a fixed rate will not be affected.
"This is a decision the bank has made reluctantly,'' CBA group executive of retail banking services Ross McEwan said.
“However, given our increasing funding costs, it has become necessary to make this increase.”
The decision signalled the risk of another round of interest rate hikes by the big retail banks outside changes by the Reserve Bank of Australia in official cash rates.
The increase will take effect from June 15, and take its base variable rate to 5.23 per cent.
The Reserve Bank's cash rate target is 3 per cent.
CBA said with the increase in its variable mortgage rate, it will still have the equal-lowest standard variable rate of all the major banks.
Wayne Swan called the CBA increase "Selfish" and is suppotive of Australian consumers who feel angry. The Treasurer believes the rate rise will hinder efforts by the government and the community to support our economy during the global recession.
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