CBA has this afternoon announced it will increase its variable mortgage rate by 0.37 per cent p.a.
CBA’s decision comes after Westpac and NAB upped their standard variable home loan rates by 0.45 per cent p.a and 0.25 per cent p.a respectively, following the RBA’s announcement of a cash rate increase last Tuesday, 1 December 2009.
CBA’s group executive, Ross McEwan said “While the change in the official cash rate has partly contributed to this interest rate increase, the sustained increase in wholesale funding costs that we are experiencing has also been a major factor.”
“In the market for deposits, there is also intense competition amongst the banks. As wholesale funding costs remain high we are also increasing our deposit interest rates. This is good news for many of our customers who have been experiencing near historic low returns on their investments as banks have navigated through the global crisis,” Mr McEwan said.
The changes will be effective from 9 December 2009.