Westpac announces cuts to credit card rates

Westpac New Zealand has announced it is passing on the full value of the Reserve Bank of New Zealand's Official Cash Rate cut to its business and standard consumer credit card customers - plus a little bit more to its low interest credit card customers.

Following the reduction in its floating home lending rate to 6.49% announced last month in anticipation of the rate reduction, Westpac is reducing the interest rate that applies to purchases on its standard and business credit cards by 0.5% to 19.45%p.a. It will also lower the rate applied to purchases on its low rate credit card 0.55% to 12.95%p.a.

Westpac said consumers were looking for relief in all areas, and for a variety of reasons credit card interest rates had remained stubbornly high.

"The latest OCR change, we believe, provides an opportunity to address credit card rates again, and demonstrate our willingness to pass through benefits where we can," Westpac spokesman Craig Dowling said.

The rates will become effective from 1 April, following a notification period. Other rates continue to be reviewed.

ENDS

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