Commonwealth Bank considering cutting credit card interest rates

Photo by Pawan Kawan on Unsplash

Commonwealth Bank will consider lowering interest rates on its credit cards to ease the burden on customers struggling to pay bills during the coronavirus pandemic.

Speaking on ABC radio on Monday, Commonwealth Bank CEO Matt Comyn said the bank wouldn't rule out lowering interest rates on unsecured credit card debt.

"We certainly are looking at how we might price credit cards over this period," he said.

Savings.com.au has reached out to Commonwealth Bank for further comment.

Mr Comyn was also quick to reassure customers the bank was in a strong position to withstand the crisis.

"CBA has never been in a stronger situation from our balance sheet, capital, levels of liquidity and cash," he said.

"Australia's financial institutions are thankfully very strong at this point in time and we're going to use our balance sheets alongside the government and the Reserve Bank to get businesses through to the other side.

"It's critical we are able to give our customers certainty."

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Mr Comyn said only a "small number" of customers had so far contacted the bank to take up the offer of deferring their mortgage payments for six months.

The bank will also reduce home loan repayments to the minimum required under their loan contract from 1 May, unless they opt-out. 

According to the bank, this will release up to $400 per month for customers.

Yesterday, the Morrison Government announced a second wave of stimulus.

One of the measures will allow sacked and stood-down workers to withdraw $20,000 over a two-year period, and 2020-21 to help them pay for essentials.

Mr Comyn said he supports the measure.

"It's a relatively small amount over a two year period, I think that's appropriate and clear," he said.

"I do think that's important people have a variety of means and mechanisms to get access to cash to get them through a period that has been outside their control."

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