Commonwealth lifts rates

Commonwealth Bank have announced that they would be lifting their fixed rates, effective last Friday.

The Commonwealth have moved their one year rate up 20 points to 6.45 per cent, their two and three year rates both moved up 30 points to 6.55 per cent and 6.75 per cent respectively. The four year rate moved up 35 points to 6.90 per cent, and the five year rate is now at 6.95 per cent, up 30 points.

While most analysts expected to see some upward movement in fixed rates following fluctuations in the bond market, it is perhaps surprising that the Commonwealth were the first to move. Whilst we would expect to see some lenders follow the Commonwealth’s lead, we doubt it is the end of the historically low interest rates, as some have been quick to proclaim.

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