Banking giant expects central bank to lift cash rate in February
Australia’s largest home lender Commonwealth Bank has increased its three-year fixed mortgage rate to 6.04%, marking a 70-basis-point increase from its previous 5.34% rate.
The comparison rate has increased from 7.13% to 7.33%, therefore increasing monthly repayments on a $450,000 30-year mortgage by nearly $200.
The hike comes as banking majors grow hawkish on the Reserve Bank of Australia (RBA)’s 2026 interest rate outlook.
Although latest inflation figures have eased the pressure on the RBA to list the cash rate, CBA still expects a 25-basis-point lift in February.
NAB predicts as many as two cash rate hikes could be on the agenda in the first half of 2026, while Westpac and ANZ have kept their forecast on hold at 3.6% for the moment.
