The Commonwealth Bank, the nation’s biggest mortgage lender, has announced its home loan rates will raise by 30 basis points, exceeding the 25 basis point rise in official cash rates announced yesterday.
Ross McEwan, CBA’s group executive retail banking services, said in a statement that he blamed continuing volatility in global markets and additional credit costs for the extra rise.
This is the second time this year the CBA has raised its rates independent of RBA rises. Last month all major lenders increased home loan rates in response to rising funding costs sparked by a global credit crisis.
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The Treasurer Wayne Swan reprimanded the lenders at the time.
CBA has the highest share of retail deposits among Australia banks, making it less reliant on the wholesale funding market.
ANZ Bank, Australia’s third-biggest bank, has reportedly said its rates are under review.