SYDNEY - AUSTRALIA'S deputy prime minister on Sunday said the government was 'rightly furious' about a top bank's surprise decision to raise rates and warned other lenders against following suit.

Deputy Prime Minister Julia Gillard kept up a government offensive against Commonwealth Bank, which has been accused of undermining efforts to fight the economic downturn.

'This is a decision the government is rightly furious about,' Ms Gillard told the Nine Network.

'The Commonwealth Bank is acting in a selfish way,' she added. 'This is a time in which we want all Australians and all Australian businesses working together.' Commonwealth Bank announced a rise of 10 basis points in its standard variable mortgage rates on Friday, prompting immediate condemnation from Prime Minister Kevin Rudd and Treasurer Wayne Swan.

Australia's central bank has slashed the repo rate to a 49-year low and is rolling out a 42 billion Australian dollar (S$49 billion) stimulus package to boost the economy.

'I think the other banks would be taking on board the government's words about this action,' Ms Gillard said.

'At the end of the day, how Australian banks go depends very much on how the Australian economy goes.' -- AFP