ANZ's credit card interest rate cut cold comfort for customers, Choice says

A move by one of Australia's big banks to cut some credit card interest rates has been labelled a feeble attempt to offer consumers a fair deal.

ANZ reduced interest rates by up to 2 per cent on two of its credit cards to 11.49 per cent — its lowest rate since 2003.

Consumer advocate group Choice said the big four banks' rates have been too high for too long, so the move makes little difference for customers.

"They are still toxic products and the big four banks know that — ANZ is a long way from having the most competitive card on the market," Choice spokesman Tom Godfrey said.

"So for the thousands of people out there with the big four banks, who may now get a little bit of relief from ANZ, it's cold comfort."

Choice does not anticipate the other big banks will do the same.

"It would be great if the other four banks dropped their interest rates as well to reasonable levels down below 10 per cent — but this move does not get them out of further scrutiny," Mr Godfrey said.

Choice said unhappy customers should find cheaper rates elsewhere.

"My advice to consumers is that if you have a credit card with one of the big four banks and you are carrying a balance forward then move your money, they do not have one credit card in the top 20 in Australia when it comes to interest rates," Mr Godfrey said

'Banks need to explain themselves', Xenophon says

Independent South Australian senator Nick Xenophon welcomed the move and said the banks were being irresponsible by keeping interest rates so high on credit cards.

However, he said it did not go far enough and the other big banks needed to follow suit.

"We are being gouged with credit cards, we actually need some fundamental reforms," Senator Xenophon said.

"We really need to look at greater market competition or the banks need to really explain themselves in why they are gouging consumers in this way."

Other credit cards on the market offer rates below 10 per cent, with some as a low as 8.99 per cent.

The Turnbull Government has welcomed the move, describing it as a win for families.

But Federal Government backbenchers are vowing to put further pressure on the remaining big four banks.

Federal Liberal MP Scott Buchholz has been a longstanding outspoken critic of the big banks and said the move was a trigger reaction after bank bosses fronted a parliamentary committee hearing late last year.

"What we've seen from the banks over the last five or six years is we've seen interest rates decrease, we've seen the standard variables follow the cash rate downwards, but we haven't seen credit cards follow that same trajectory," he said.

"So pressure was brought about on the banks in that inquiry.

"We will have the banks appearing in the next fortnight in Canberra, along with the Australian Banking Association, where I will continue to take a similar line of questioning with those banks that haven't taken the commercial choice to shift their interest rates yet."