Treasurer Wayne Swan has branded a decision by the Commonwealth Bank of Australia to raise its home loan interest rates as "selfish".
Mr Swan said the decision, which has raised fears other banks will follow, will hinder the economic recovery.
CBA on Friday said it would raise its standard variable mortgage rates by 10 basis point from Monday June 15.
"The decision by the Commonwealth Bank gets in the way of interest rates relief, measures to stimulate our economy and to support jobs," Mr Swan told journalists in Brisbane.
"I think Australians rightly will be furious with the Commonwealth Bank for hindering the efforts of the Commonwealth government, the Reserve Bank and the community to support our economy during the global recession."
Asked if the decision was a snub to the government given it had put in place measures to guarantee bank funding, Mr Swan said: "I think it's a selfish decision from the Commonwealth Bank.
"There are ups and downs when it comes to those decisions over time, but there are few decisions I can think of that are more selfish than this one."
Mr Swan said all banks must pull together and support the Australian economy.
He said the CBA's decision to lift home loan rates was not inevitable and that he had spoken with the bank on Friday to express his concern.
"I have conveyed my opinion directly to the Commonwealth Bank today," he said.
The bank will also raise rates on a range of its fixed home loan products for new customers.
AAP