Australian PM slams Commonwealth Bank rates rise

• Source: Xinhua
• [16:55 June 12 2009]
• Comments

Australian Prime Minister Kevin Rudd has slammed the Commonwealth Bank of Australia (CBA) for lifting its interest rates on home and business loans during the economic downturn.

The CBA on Friday announced it would raise its standard variable mortgage rates to 5.74 percent, from 5.64 percent, effective Monday, June 15.

Interest rates on a range of the bank's fixed home loans and its Residentially Secured Better Business Loan will also rise by 10 basis points.

"I believe Australians have every right to be furious with today's decision by the Commonwealth Bank to increase its home loan rate, hindering the efforts of the government, the Reserve Bank and the business community to stimulate the economy during this global recession," Rudd told a business lunch in Brisbane.

"We are all in this together - businesses, workers, government and the Reserve Bank - and today's decision by the Commonwealth Bank runs counter to this nationwide effort," he said.