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July 6 (Reuters) – Commonwealth Bank of Australia ABC.AX on Wednesday became the first lender in the country to raise variable interest rates on home loans after the central bank’s latest 50 basis point hike, the third interest rate hike in as many months.
The nation’s largest lender will increase its variable interest rates on home loans by 0.5% per year from July 15, and added that it will also increase interest rates for “certain savings products “. (https://bit.ly/3urTWW6)
The Reserve Bank of Australia (RBA) raised its key rate to 1.35% on Tuesday, marking a 125 basis point hike since May and the fastest series of moves since 1994 – all to contain the surge in the inflation even at the risk of triggering a recession.
So far Australian lenders have been in step with the central bank to pass on the full rate hike to their clients, expecting to reap the benefits at a time when the country’s property market shows signs of cooling after an exceptional price increase of 22% last year.
(Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich)
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