Aussies may compare cheap credit cards following rate rise

Aussies may be tempted to scour the market for cheap credit cards following the decision by the Reserve Bank of Australia (RBA) to up the interest rate.

The central bank’s monetary policy committee met this week to decide on the base rate, which was set at 3.75 per cent, up by 25 basis points.

A statement from governor Glenn Stevens revealed the factors behind the decision, which centred on the improving financial conditions throughout the country.

He said the third consecutive rate hike was the result of resumed economic growth, supported by housing value expansion and improved labour markets.

"In Australia, the downturn was relatively mild, and measures of confidence and business conditions suggest that the economy is in a gradual recovery," Mr Stevens commented.

Christmas shoppers were recently advised to reduce the limit on their credit cards if they wanted to ensure they did not start the new year on the wrong financial footing.

This came from Credit Union Australia chief executive Chris Whitehead, who spoke to news.com.au.

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