Analysts predict all major banks will raise rates

Analysts are reporting it's not a question of 'if' but 'when' the other majors will lift their rates in step with the Commonwealth Bank.

Despite the federal government's criticism of the CBA's decision to lift its rates independently of the Reserve Bank, the other majors are expected to raise rates in response to funding pressures.

Last week, the CBA announced it was lifting standard variable rates by 10 basis points, up to 5.74%. The rates for fixed home loans and residentially secured Better Business Loans have also been increased by 10 basis points.

The move prompted scathing comments from government; Treasurer Wayne Swan called the rate hike "selfish", while Prime Minister Kevin Rudd said Australians had the right to be "furious".

CBA's move was predicted by analysts early last week. NAB was also fingered to lift rates. Both ANZ and NAB have stated rates were "constantly under review".

Meanwhile, pundits predict the interest rate hike, combined with increasing unemployment will force the Reserve Bank to lower the cash rate at its next meeting.

Related stories:

CBA under fire as it pushes up rates - CBA pushes up standard variable rates by 10 basis points

Rate rise rumours circulate - More lenders are rumoured to be reviewing their interest rates as the cost of funding continues to climb