AUSTRALIA'S biggest home lender has been rankled by ANZ chief Mike Smith's pledge to keep rate increases on variable mortgages in line with Reserve Bank movements. The Commonwealth Bank, which accounts for 31 per cent of all home loans in Australia, yesterday refused to rule out boosting rates on variable mortgages above RBA actions, but claimed it had a better record than the other major banks on delivering cheap home loans.

So far ANZ remains the only retail bank to meet the call from Prime Minister Kevin Rudd to stay within the official rate cycle, a decision acknowledged yesterday by Treasurer Wayne Swan, The Herald Sun reports. I join with ANZ customers in welcoming this decision to do the right thing by the economy and pass on no more than official rate rises from the independent RBA," Mr Swan said.