Furious Gillard warns banks

Mortgage holders and the government are ‘furious' with the Commonwealth Bank's decision to raise interest rates on its' standard variable mortgage products said the deputy prime minister Julia Gillard.

Ms Gillard said the other banks ‘would be taking on board the government's words about this action.'

Commbank still has the equal lowest headline rate with NAB on a standard variable mortgage at 5.74 per cent. Westpac and ANZ are at 5.81 per cent.

Interest rate strategist Matthew Johnson from UBS said the other banks were likely to follow the Commonwealth's lead and raise interest rates as well.

Source: The Australian Financial Review