There is speculation that Commonwealth Bank is considering an increase in its standard home loan interest rate.
The Herald Sun reported that unidentified sell-side banking analysts are suggesting the CBA is poised to increase its standard variable rate home loan by as much as 10 basis points this month because its funding costs are continuing to rise.
CBA and most other banks cut standard home loan rates by only 10 basis points in April this year following a cut of 25 basis points by the Reserve Bank of Australia in the cash rate.
CBA's standard variable interest rate for a home loan is 5.64 per cent.
While funding margins have stabilised and to some extent eased in wholesale markets over the last couple of months, competition for retail deposits may be getting sharper.
Term deposits that were taken out a year or so ago at rates of eight per cent or better are being rolled over and retail interest rates are now half last year's rate or less.