Norris expects two more rate rises

Commonwealth Bank expects one or two rises to the official cash interest rate in the next six months. Chief executive Ralph Norris said he expected any rate rises would be passed on to CBA borrowers.

“We would look at the situation as and when increases come through in the OCR, but certainly at this point we would expect in the normal course of events that would be passed through,” he said.

The government's fiscal policy was complementary with the Reserve Bank's contractionary monetary policy, which was appropriate given inflation was rising in the near to medium term, he said.

Mr Norris said operating conditions remained challenging, and while the Australian economy continued to perform well, consumer and business confidence remained “fragile”.

Source: Herald Sun