Other banks to follow CBA’s lead

Other banks might follow CBA’s lead and raise their standard variable mortgage by more than the RBA’s 0.25 per cent rise of yesterday. Westpac was feeling the pressure, and the temptation, over the three months that CBA tantalised the market with the prospect of lifting the yield on its home loan book. ANZ and Bendigo have said they want to lift margins on home loans.

NAB seems less likely to move rates by more than 25 basis points, given the tenor of its efforts to act as a customer champion in retail banking lately. There is some expectation in the market that NAB will fall into line with CBA rates, although, given the flat NAB share price yesterday, bank investors may be expecting NAB to follow the Reserve Bank of Australia’s lead instead.

Source: Banking Day