CBA, ANZ, St.George match RBA increase

The Commonwealth Bank, ANZ and St.George have matched the RBA's 25bps increase announced yesterday with Westpac and NAB expected to do the same.

CBA will raise interest rates on standard variable loans to 6.86%. ANZ's will push its standard variable rate to 6.9%, while St.George will raise the interest rate on its standard variable home loans to 6.93%.

All increases will affect new and existing customers from 5 March.

ANZ Australia chief execuitve Phil Chronican said that funding costs continued to be a factor for the banks.

"Funding costs remain high and increasingly this looks to be a permanent part of the world's financial landscape following the global financial crisis," he said.

Westpac and NAB are still reviewing their decision,.

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RBA presses 'play' button on rates  - aving held off raising interest rates in February, the RBA has today, as expected, pushed up the official cash rate by 0.25%