SYDNEY, March 23, 2026, 02:12 AEDT
- CBA slipped 0.97% on Friday, closing at A$175.64. National Australia Bank dropped 2.25%, with Westpac and ANZ off 1.05% and 1.13%, respectively.
- Fresh worries over oil hit ahead of the ASX open, after Reuters reported Brent finished Friday at $112.19 a barrel—with the potential for more gains when trading resumes Monday.
- The Reserve Bank of Australia hiked its cash rate to 4.10% last week. CBA plans to push that increase onto home loans and eligible variable-rate business loans starting March 27.
Commonwealth Bank of Australia shares slipped 0.97% to A$175.64 by Friday’s close, with the lender underperforming into Monday’s session. Investors have another stretch of rate and inflation surprises to contend with, but CBA fared better than NAB, Westpac and ANZ on the day.
This is significant: CBA holds its spot as Australia’s biggest lender, and Friday’s A$943.4 million turnover underscored just how closely the market keeps tabs on it. The Reserve Bank’s latest rate hike, paired with renewed oil jitters over the weekend, has thrown investors back into the mix—debating if higher rates will boost bank margins more than they squeeze borrowers and strain households.
The RBA moved last week, hiking the cash rate 25 basis points to 4.10% after a tight 5-4 split—its narrowest margin since publishing vote details. CBA will bump up its home-loan variable rates and eligible business lending by the same 25 points, effective March 27.
Angus Sullivan, who heads retail banking at CBA, acknowledged that rate moves “can put additional pressure on household budgets”. This comes just as Reuters flagged the prospect of oil prices climbing again on Monday, citing fresh threats in the Strait of Hormuz over the weekend. CommBank
Still, CBA enters the week riding strong operating momentum. Back in February, the bank posted record first-half cash earnings—its go-to metric for underlying profit—at A$5.45 billion, lifted by growth in home loans, business lending, and deposits. Shares surged as much as 8.4% that day.
CBA grabbed the market’s focus again Friday, ranking as the ASX’s number two stock by traded value, just behind BHP.
Belinda Allen, who heads Australian economics at CBA, told markets earlier this month that “the balance of probabilities has shifted” toward additional tightening after the latest RBA messaging. On March 19, she reiterated her view, calling the upcoming February CPI print—due March 25—“critical for the outlook.” Reuters
But the trade isn’t straightforward. Sure, rising rates may boost what banks can earn on loans, yet they risk crimping credit growth and pushing borrowers if mortgages, petrol, and day-to-day expenses all climb at once. For now, Reuters data indicate CBA holds an Underperform consensus among 14 analysts.
Brent ended Friday up 8.8% for the week and looked set to climb higher when markets opened Monday, Reuters reported Sunday, underlining that for bank investors, the risk goes beyond just the banks—it’s a bigger macro issue.
Wednesday’s inflation numbers now loom as the next real test for CBA shares. If the data comes in hot, rate jitters probably stick around—Allen’s made clear that CPI will matter. CBA is also set to roll out its higher loan rates later this week.
