Commonwealth Bank to raise variable business loan rates

Commonwealth Bank will lift rates by 0.25 percentage points a year on a range of eligible variable-rate business lending products after the Reserve Bank of Australia increased the official cash rate by the same amount.

The bank said the change will apply across several reference rates used in its business banking portfolio. It will flow through to eligible variable-rate business loans and overdraft products.

The rate move will apply to the CBA Business Bank Variable Base Rate, the Commercial Variable Base Rate, the Residential Equity Rate, the Commercial Residential Equity Rate, the Overdraft Reference Rate, and the Commercial Overdraft Reference Rate. The bank also said eligible variable-rate business lending products that use these settings include BetterBusiness Loans and Business Overdrafts.

Rate Changes

Commonwealth Bank said it will increase rates by 0.25% per annum on eligible variable-rate business lending products. The bank set an effective date of 13 February 2026 for the changes.

Variable-rate lending products typically reprice more quickly than fixed-rate products after a central bank move. Many small and medium-sized businesses use overdrafts, lines of credit, or variable loans for working capital and ongoing operating costs.

Economic Backdrop

Commonwealth Bank pointed to economic activity and labour market conditions as factors behind the latest monetary policy shift. It also referred to inflation pressures and the Reserve Bank's objective to return inflation to target.

"Australia's economy ended 2025 with more momentum than many expected, reinforcing strong business activity and household demand, supported by a labour market that remains tight. This resilience is positive, but it also means the economy continues to operate close to, or above full capacity, adding to inflationary pressures. We recognise the Reserve Bank's actions are aimed at returning inflation to target and preserving long term economic stability," said Mike Vacy-Lyle, Group Executive Business Banking, Commonwealth Bank.

Vacy-Lyle also addressed the effect of higher borrowing costs on business customers and the bank's approach to engagement and assistance.

"We know any adjustment in interest rates is challenging for business owners who are already navigating higher operating costs. Our priority is to support customers through this environment, and our teams are here to discuss options to help businesses manage the impact of these changes," said Vacy-Lyle.

Customer Support

Commonwealth Bank said it has tools and programmes for business customers that cover cash flow monitoring, bill forecasting and business insights. It said customers can access a Business Cash Flow tool in the CommBank app. It also listed Bill Sense and its Daily IQ business insights tool.

The bank also highlighted training content for small businesses. It said CommBank Business Masterclass modules cover areas including AI and cashflow, with more modules planned.

For customers facing financial stress, the bank pointed to a set of support measures. It said options include deferred business loan repayments and debt restructuring.

Conditions across industries remain uneven, the bank said, and it encouraged customers to contact the bank early if they need assistance. "Conditions will continue to vary across sectors, and we encourage any customers needing support to reach out early to our dedicated Business Financial Assistance team," said Vacy-Lyle.

Commonwealth Bank said it will direct eligible variable-rate business lending products linked to its base and overdraft reference rates higher in line with the change, with the updated pricing taking effect from 13 February 2026.