CBA, ANZ, St.George match RBA interest rate increase

The Commonwealth Bank, ANZ and St George have matched the RBA's 25bps increase announced yesterday. Westpac and NAB are expected to do the same.

CBA will raise interest rates on standard variable loans to 6.86%, ANZ will push its standard variable rate to 6.9% and St George will raise the interest rate on its standard variable home loans to 6.93%. All interest rate increases will affect new and existing customers from 5th March.

ANZ Australia's chief execuitve Phil Chronican, said that funding costs continued to be a factor for the banks.

"Funding costs remain high and increasingly this looks to be a permanent part of the world's financial landscape following the global financial crisis," he said.

Westpac and NAB are still reviewing their decision to increase interest rates.

With  the increase in interest rates, many home owners will be looking at refinancing their home loan. Speak to the mortgage brokers at Intellichoice on 1300 55 10 45 if you are thinking of refinancing your home loan or need a home loan health check.