Sydney, January 18, 2026, 17:07 AEDT — Market closed
- Shares of Commonwealth Bank closed up Friday, capping a strong week for Australian financial stocks
- Movements in fixed mortgage rates have intensified the market’s attention on where interest rates are headed
- Investors are eyeing the RBA’s early-February move along with CBA’s half-year earnings due Feb. 11
Shares of Commonwealth Bank of Australia ended Friday’s session 0.52% higher at A$154.30, fluctuating between A$152.89 and A$155.29 during the day. The stock wrapped up the week with gains ahead of the weekend. 1
Banks lifted Australian shares to an 11-week peak in the last session, sending the S&P/ASX 200 up 0.48% to 8,903.9. IG market analyst Tony Sycamore noted that strength in U.S. banks was boosting local confidence, describing it as “a really solid week.” 2
This matters because CBA dominates the market. When it moves, the index usually follows, and traders often track the rates narrative even without new company updates.
Mortgage pricing is shifting. This week, Commonwealth Bank hiked owner-occupier fixed home loan rates by as much as 0.7 percentage points, pushing its lowest two-year fixed rate to 5.79%. Macquarie Bank followed, increasing fixed rates by 0.25 percentage points, according to a report. “The fixed rate market continues to factor in the possibility of a higher cash rate,” said Canstar data insights director Sally Tindall. 3
The Reserve Bank of Australia’s first policy meeting of the year is set for February 2–3. The cash-rate decision will be announced at 2:30pm AEDT on February 3, according to the ABC. 4
Bond yields have returned to focus. Australia’s 10-year government bond yield climbed to 4.71% on January 16, according to Trading Economics data — a shift that impacts banks by influencing funding costs and shaping investor views on future profits. 5
CBA’s calendar points to another key event. The bank will report half‑year results and declare its interim dividend on February 11. The ex‑dividend date is set for February 18, with the record date following on February 19, according to the company’s financial calendar. 6
Westpac, NAB, and ANZ move in lockstep with each other. Changes in mortgage rates, deposit battles, or shifts in bad-debt forecasts usually ripple through the group at once—though these trends often surface earliest at CBA.
Investors will zero in on net interest margin — the difference between what banks earn on loans and pay on deposits — along with loan growth and credit losses. These factors could complicate the straightforward “rates up is good” narrative.
The risk here: higher fixed rates might slow new lending more than they boost pricing. Plus, deposit competition could prove tougher than anticipated. If the RBA surprises with a hold or a softer stance, it could undercut the bank rally that pushed the sector into the weekend.
The next key dates are packed tightly: the RBA decision lands on February 3, followed by CBA’s half-year results and interim dividend announcement on February 11.
