More rate action as CBA hikes across the board again

Fourth rate rise in two months for Australia's biggest lender

More rate action as CBA hikes across the board again


By Mike Wood

CBA has hiked its interest rates yet again, making its fourth such fixed rate rise in just two months.

The standout rise was in the long-term rates, with four-year fixed going up by 25pts, from 3.09% to 3.34%. Five-year fixed went from 3.39% to 3.59%, a 20 basis point rise.

For shorter term rates, the rise was not as steep: one-year went up 0.05pts to 2.54%, two-year went up 10pts to 2.69% and three-year rose 15pts to 3.14%.

The move widened the gap between two-year and three-year to 45 basis points, signalling yet further that CBA thinks that the cash rate will rise in 2023.

The rate of change in the market has been rapid in recent weeks, with four rises apiece across all of the Big Four, in line with the Reserve Bank of Australia (RBA) changing its cash rate rise schedule and abandoning the date of 2024 to move the basic cost of funds.

CBA has now added more than a whole percentage point to their four-year rate since the middle of October, with close to a full point in three-year fixed as well.

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