You are using an older browser version. Please use a supported version for the best MSN experience.

Rate cuts not reaching credit card holders

AAP logoAAP 12/08/2016

The decision by lenders not to pass on Reserve Bank rate cuts to credit card holders has pushed the gap between the cash rate and the average card purchase rate to its widest since the immediate aftermath of the global financial crisis.

The gap between the official cash rate and the average credit card interest rate has widened from 12.7 per cent in June 2011 to 15.88 per cent, the biggest it has been since 2009, according to price comparison site Mozo.

While the Reserve Bank has twice cut the cash rate by 0.25 percentage points this year, Mozo says only two lenders passed on cuts to card holders. The big four banks have kept their lowest rates unchanged for about two years.

BIG FOUR'S LOWEST CREDIT CARD RATES

* ANZ: 13.49pct

* Commonwealth Bank: 13.49pct

* National Australia Bank: 13.99pct

* Westpac: 13.49pct

(Source: ANZ, CBA, NAB, Westpac)

image beaconimage beaconimage beacon