Are credit card interest rates linked to RBA rates
Interest rate spreads earned by credit card issuers have widened by about one third since the Global Financial Crisis in 2008, from 6.7 per cent to 8.7 per cent.
Despite banks claiming there is no relationship, until four years ago, credit-card interest rates moved up and down in line with the RBA’s official cash rate.
Consumer group Choice’s head of campaigns Matt Levey said credit cards are a cash cow for banks and other card issuers.
Source: The Daily Telegraph