We will decide on rates says CBA

Commonwealth Bank chief executive Ralph Norris said yesterday that CBA will raise rates outside of movements by the Reserve Bank of Australia if it deems that they are in the commercial interest of the company.

”I don't think there's any doubt that we will continue to reprice where necessary,” Mr Norris said. ”We've got to act on a commercial basis and certainly what is right for the business and if we need to reprice we will reprice.”

Commonwealth Bank reported a seven per cent deline in cash earnings and an annual cash profit of $4.41 billion. CBA will slash dividend payments by 25 per cent this year.

Norris said there were signs of improvement in the economy and the business but some uncertainty remained and there were still ”significant risks on the down side”. Norris said economic conditions are likely to remain challenging for the group and many of its customers in the coming year.

Source: The Age