Credit card interest rates remain stuck at high levels and relief is unlikely even if the Reserve Bank of Australia announces an official rate cut next week.
In the past five years, the RBA official interest rate has dropped 2 per cent while average credit card interest rates have jumped more than 2 per cent for both regular and low-rate cards.
Australian Bankers’ Association chief executive Steven Munchenberg says credit card interest rates are driven by three main things: competitive pricing, how much it costs the lender and a risk element. “As a result of the global financial crisis, banks have tended to reprice risk,” he says.
Source: The Daily Telegraph
