CBA to pass on interest rate rises to customers

The Commonwealth Bank of Australia (CBA) has announced that it is likely pass on any increases in interest rates announced by the Reserve Bank of Australia.

Ralph Norris, the chief executive of the CBA, forecast that there will be two rises by the end of 2011, reports the Australian Associated Press.

This prediction is in line with those of many other leading economists and financial institutions, including the National Bank of Australia (NAB), which revised its forecasts earlier this week.

According to the NAB, the RBA is expected to push up the cash rate in June or July and then again in September.

Commenting on the impending increases, Mr Norris said: "We would look at the situation as and when increases come … but certainly at this point we would expect in the normal course of events that would be passed through."

At the moment, the cash rate stands at the 4.75 per cent level set in November 2010.

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