Commonwealth Bank lifts interest rates: other lenders to follow
The Commonwealth Bank has lifted its interest rates on home and business loans by 0.1 percent in order to offset higher funding costs, with other major lenders predicted to follow suit.
The rate on its standard variable loans will rise to 5.74 percent from 5.64 percent.
The move has been criticised by the Federal Government, with Treasurer Wayne Swan calling the hike “selfish” while Deputy Prime Minister Julia Gillard said she was “furious” with the decision.
“The Government has been acting to stimulate the economy to support Australian jobs, the Reserve Bank has been decreasing interest rates once again to spur activity and here we have the Commonwealth Bank acting in completely the reverse direction. This is a decision the Government is rightly furious about and one we are describing as selfish because that’s precisely the right word.”
Analysts are predicting other major lenders will follow suit, with NAB predicted to lift their rates, while ANZ and NAB have stated rates were “constantly under review.”
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Stop the presses! A bank, having been given every support by the government, choses to hike fees on money itself is getting at a lower rate? Heaven forfend!
Seriously, is anyone shocked that the jackals are back at it again, and so soon? Whenever government, or the public shows interest in regulating the finance industry to rein in such blatant greed the cries of the lobbyists ring from the hills; ‘marxism!’, ‘fascism!’, ‘communism’! Yet give them the slightest panic of losing their shirts (or jobs) they are more than happy to run to the ‘evil oppressive’ regulators for relief. Maybe it’s time we stopped saving banks and bankers. At least that way those who are left will be more appreciative of the help they do receive.