CBA lifts variable mortgage rates after RBA decision

By - Reuters

Commonwealth Bank of Australia said on Wednesday it would raise its home loan variable interest rates by 50 basis points per annum, a day after the central bank surprised markets with its hawkish tone.

The Reserve Bank of Australia (RBA) at its June policy meeting on Tuesday lifted interest rates by the most in 22 years, as it battles to restrain surging inflation.

In response to the RBA's hike, a few Australian lenders are passing on the full 50 basis-point raise to customers from June 21.

Last month, the "Big Four" banks - CBA, Australia and New Zealand Banking Group, National Australia Bank and Westpac Banking Corp - lifted their mortgage rates to match the RBA's 25 basis-point rate hike.

CBA, the country's biggest lender, joined peer Westpac that announced a similar hike on Tuesday soon after the RBA's decision.