Commonwealth Bank raises variable interest rate

The Commonwealth Bank has lifted its variable mortgage rate by 10 basis points to 5.74%, effective from next Monday, 15 June. The interest rate rise will apply to standard variable loans, as well as a range of fixed home loans and the bank’s Residentially Secured Better Business Loan. But the bank has said the rise will not affect existing customers.

“This is a decision the bank has made reluctantly,” Commonwealth Bank group executive of retail banking services Ross McEwan said in a statement.

He also said the decision to raise interest rates was due to the bank’s higher funding costs.

The bank has signaled in recent days that it could not rule out interest rate hikes before next month’s Reserve Bank of Australia meeting.