Australian Treasurer criticizes CBA rate rise
Australian Treasurer Wayne Swan said on Friday there's no justification following the Commonwealth Bank of Australia's (CBA) decision to raise its interest rates beyond the increase by the central bank.
CBA, Australia's biggest home loan lender, will increase its standard variable home loan rate by 37 basis points to 6.61 percent effective from next Wednesday.
Westpac also this week announced it would raise its standard variable rate, by 45 basis points to 6.75 percent.
The Reserve Bank of Australia increased its base cash interest rate by 25 basis points on Tuesday to 3.75 percent.
"I've said before there is no justification for Westpac and I believe there's no justification for the Commonwealth Bank to move their rates above the official interest rate rise from the independent Reserve Bank,"
"I believe their customers will be angry with these actions." "I believe they will be disillusioned," Swan told reporters.
Swan was however pleased to see competition from other banks such as the NAB which was not following its competitor's rate rise.
"It's good to see there's some competition out there," he said.
"These banks will have to live with the consequences of their action, and I believe they will be harshly judged by their customers and by the broader community."
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