Commonwealth Bank has given hints that it may increase interest rates even before the central bank makes its move to jack up cash rates.

In a luncheon meeting with other business leaders, Commonwealth Bank CEO Mr. Ralph Norris that his bank is ready to move forward in increasing rates and many no longer wait for the Reserve Bank of Australia's resolve by early November.

Analysts said this decision by local banks will be a sort of leverage for earnings as a consequence of the higher value of the Australian dollar.

An increase of at least 100 to 200 basis points from 4.5 to 4.75 percent is foreseen, or within this range.

"I think there's no doubt that when we look at current funding costs, rates are going to increase, and as I said in my address today the additional cost of liquidity and the additional cost of capital is going to have upward pressure on interest rates going forward," Mr. Norris said.