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The Commonwealth Bank has moved to lift its lending rates by 10 basis points to offset the rising cost of long term funding.
As of Monday, the bank’s standard variable rate will rise to 5.74 per cent, the bank said today.
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CBA said the decision had been made, “reluctantly”, as a result of funding cost pressures.
“We fully understand that any increase in interest rates impacts on our customers and for that reason, have continued to absorb as much of the additional funding costs as long as we could,” CBA group executive of retail banking Ross McEwan said.
“Unfortunately, we have seen the bank’s wholesale funding costs remain high and continue to increase as previous long term funding matures and is replaced with new funding at significantly higher cost.”
The announcement will bring the bank’s SVR in line with NAB but still below those of St George (5.79 per cent), Westpac (5.81 per cent) and ANZ (5.81 per cent).
