Commonwealth Bank (CBA) has announced it will pass on the full 0.25 per cent interest rate increase from the Reserve Bank of Australia (RBA) to its variable rate home loan customers. The change will come into effect on February 13. CBA is one of Australia’s largest banks, providing a range of financial services including retail, business, and institutional banking, as well as wealth management. It serves millions of customers across the country.
The bank’s announcement focused on supporting customers during this period of financial adjustment. CBA said its home loan variable interest rates would rise in line with the RBA’s decision. There was no mention in the release about any changes to deposit rates for CBA customers.
Angus Sullivan, CBA’s group executive for retail banking, acknowledged the potential impact of the rate increase. “We know that interest rate changes can create additional pressure for our home loan customers, which is why we’re focused on providing support and helping them stay in control of their finances,” he said.
It is anticipated that other major banks will soon follow suit and confirm similar interest rate increases for their variable home loan customers. This follows the RBA’s decision to raise interest rates for the first time in over two years, signalling a shift in monetary policy.
