Credit cards threatened with another rate rise by RBA

27 November 2009

Interest rates have come to the forefront of predictions for the credit cards industry, after statements from the RBA indicated the potential for future growth in the national economy.

Senior Reserve Bank official Ric Battellino released a report on the Australian housing which indicted the positive nature of the Australian housing industry, with the Australian economy having entered a "new upswing", according to Mr Battellino. This new status of the economy is suggested to underpin positive growth for some years.

On October 6th 2009, the first interest rate rise was recorded with the Reserve Bank of Australia raising its key interest rate from 3 per cent to 3.25 per cent after reviewing Australia's overall economic health.

Governor of the RBA Glenn Stevens stated that "Economic conditions in Australia have been stronger than expected and measures of confidence have recovered,''

''[The] basis for such a low interest rate setting has now passed,

'The global economy is resuming growth,

''With economic policy settings likely to remain expansionary for some time, the recovery will likely continue during 2010 and forecasts are being revised higher.'' Mr Stevens stated.

Banks have been following suit and matching the Reserve Bank of Australia when raising rates, meaning that many people are now being forced into budgeting restraints. As a result, some credit cards industry experts are advising that cardholders take advantage of low interest rates and the balance transfer system in order to reduce their own personal debt faster.

CreditCards.com.au is an Australian owned information provider on Australian credit card products. Please use our Compare Credit Cards table to find the right credit card for your financial needs.

We cover a wide range of credit card services provided by credit card companies through the banking and financial sector.

Back to News Index | Back to Home