Commonwealth Bank chief defends interest rate rise
The recent interest rate hike announced by the Commonwealth Bank will be good for the economy.
That is according to the bank's chief executive, Sir Ralph Norris, who said the 0.45 per cent rise is better than seeing Australia "hamstrung" by a low-profit banking system, the Courier-Mail reported.
Sir Ralph conceded that the rise will mean some of the bank's customers will lose their homes, but insisted a few foreclosures is preferential to a weakening of the country's long-term economic health.
However, the expert said the decision was not taken lightly and admitted that he finds the knowledge that people will lose their homes troubling.
"I understand that people are hurting, I am seeing it. I'm not totally insulated," he told the newspaper.
"Making this decision didn't come easy. I have done all I can to try and minimise the impact by making sure we've got good customer assistance programmes for those customers that are genuinely in need. That's all I can do."
News of the interest rate rise could inspire a number of people to compare home loans with a view to switching providers.
This article is brought to you by Mozo – Helping you compare interest rates