Westpac announced on Sunday cuts of between 60 basis points and 120 basis points to its main consumer credit card rates, with its key rate cut 95 basis points to 19.95%. This means Westpac is the only major bank with its key credit card rate below 20%. The news followed the Sunday Star Times' front page story criticising the major banks for not cutting credit card rates in line with the Official Cash Rate. "Westpac is doing what it can," said Westpac spokesman Craig Dowling. "While overall rates on credit cards may still seem high they need to be viewed in the context of the lending being unsecured, but very flexible and convenient for customers," Dowling said. "Providing that flexibility and convenience involves costs, many of which remain high," Dowling said. * This article was first published in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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