Australia ‘Furious’ With Commonwealth Bank Rates, Macklin Says

June 14 (Bloomberg) -- Australian mortgage holders are “furious” with the Commonwealth Bank of Australia’s move to raise its variable mortgage rates, according to the government.

“Mortgage holders have got every reason to be furious with the Commonwealth Bank,” Jenny Macklin, minister for families, housing, community services and indigenous affairs, told the Channel 10 television network today. “We need to do everything we can to support our economy in these very difficult times, not see interest rates go up.”

The nation’s second-biggest lender on June 10 became the first of the country’s four largest banks to raise variable rates since the central bank began a record round of cuts to borrowing costs in September. Bank borrowing costs have climbed this year as speculation grows that the Reserve Bank of Australia will increase its benchmark lending rate as the economy strengthens.

“The Commonwealth Bank is acting in a selfish way,” Deputy Prime Minister Julia Gillard told the Nine television network today, according to the Herald Sun. “This is a decision the government is rightly furious about.”

The standard variable rate will increase to 5.74 percent tomorrow from 5.64 percent, Sydney-based Commonwealth Bank said June 12. Australia’s biggest mortgage lender, which previously had the lowest rate among the nation’s four largest banks, also raised business loan rates and said fixed mortgage rates will soon rise.

Central bank Governor Glenn Stevens left the overnight cash rate target at a 49-year low of 3 percent on June 2