UPDATE 1-CBA raises home-loan rate, draws govt anger

* CBA raises home loan rate by 10 basis points

* Move draws fire from Australia's Treasurer

* Bank says funding costs still at record levels

* Market speculating on first central-bank rate hike (Adds quotes from Treasurer and CBA executive, background)

By Mette Fraende and Anirban Nag

SYDNEY, June 12 (Reuters) - Commonwealth Bank of Australia (CBA.AX) (CBA), the nation's biggest home lender, moved on Friday to raise its home-loan interest rate for the first time in almost a year, in a sign that the rate cycle could be turning.

CBA said it would raise its standard, variable home-loan rate by 10 basis points from Monday, effectively unwinding a rate cut it made only two months ago when it still seemed almost certain to the money market that rates still had some way to fall.

Australian Treasurer Wayne Swan immediately criticised the increase as selfish, unjustified and a hindrance to government and central-bank efforts to support jobs.

"Australians rightly will be furious with the Commonwealth Bank for hindering the efforts of the...government, the Reserve Bank and the community to support our economy during the global recession," Swan was quoted as saying by news agency AAP.

CBA's increase comes amid a growing view that the Reserve Bank of Australia (RBA) is done with its easing cycle.

Markets RBAWATCH expect the RBA to keep rates unchanged at 3 percent in the coming six months, with futures CSRBA1Y=CSAU pricing in 75 basis points of rate hikes in the next 12 months.

This view is supported by surprisingly resilient Australian jobs data this week and by last week's gross domestic product numbers which showed the country dodged a recession in the first quarter, one of the few rich nations to do so.

"While the RBA has maintained an easing bias, recent data outcomes...would likely provide the RBA with a sense of economic optimism," said Damien McColough, rates strategist at Westpac.

"As a result, the market has removed any chance of a near-term RBA rate cut. Indeed the market is starting to actively discuss the timing of the first rate hike," McColough said.

Ross McEwan, CBA's head of retail banking, pointed to higher wholesale funding costs as the reason behind its rate increase, the first such rise since July last year when the RBA had yet to start an aggressive series of rate cuts.

The RBA has slashed its cash rate by a massive 425 basis points to 3.0 percent since September, and has said there is scope to ease further if needed, thanks to slowing inflation.