Adopting the 4% rise in the interest rates, as instructed by the RBA, the Commonwealth Bank and ANZ have passed on the update to the customers.

The Commonwealth bank has today announced that its standard variable mortgage rate would rise by 25 basis points from 6.61 per cent to 6.86 %. It also proclaimed a similar rise in deposit rates for savings accounts.

Following this, ANZ announced a rise in its standard variable home loans by 25 basis points to 6.91 per cent from March 5.

In view of the economic recovery gaining grounds, RBA has indicated a rise in interest rates to be adopted by all the lenders.

In a statement, RBA governor Glenn Stevens said, "risk of serious economic contraction had passed, and an economy that was growing faster than expected would warrant higher interest rates for the rest of the year".

He further said that this increase would add $50 to the monthly repayments of an average mortgage in Australia.

With this hike in the rates, RBA has become the first central bank in the G20 to raise official rates in 2010.

"The RBA sees the cash rate/borrowing rates as still below average, signaling clearly an ongoing bias to tighten", said UBS Chief Economist Scott Haslem.