Credit card users missing out on rate cuts

Despite the Reserve Bank of Australia’s (RBA) decision to knock 4.25 percentage points of the base interest rate since September, many credit card users have seen their rates increase.

The Sydney Morning Herald reports that many consumers are having their hopes of putting money away dashed by the persistently high credit card rates, which in some cases have increased as much as two percentage points.

Analysis carried out by the paper reveals that only two out of three credit card companies have lowered their rates, with 80 per cent of these cutting by less than two percentage points.

Defending the refusal to bring rates down, Suncorp spokesperson Michelle Barry said that historically, credit cardinterest rates have not been closely linked with RBA rates in the way that home loans have.

Many consumers will be awaiting next week’s announcement from the RBA on whether it will bring rates down any further. The group will make its decision on Tuesday (July 8th).

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