June 07, 2007
AUSTIN, Texas--(BUSINESS WIRE)--Credit card interest rates remained stable this week, as recent talk of inflationary pressures appeared to undermine the possibility of a Federal Reserve rate cut later this year. Student credit cards continued to charge the highest APRs.
Rates for major card categories tracked by CreditCards.com are listed below:
|Credit Card Rate Averages|
Recent economic data showing higher first-quarter labor costs, which could spur companies to increase prices, came alongside a new White House economic forecast calling for greater inflation. Earlier in the week, Fed Chairman Ben Bernanke and Fed Bank of Cleveland President Sandra Pianalto suggested that prices are advancing too rapidly.
Separately, April consumer credit posted the weakest growth in six months as U.S. shoppers paid off some of their credit card debt, reflected by the first decline in revolving credit since March 2006.
Meanwhile overseas, monetary policy was unexpectedly tightened in New Zealand one day after the European Central Bank raised interest rates, reflecting a shift in global sentiment toward inflationary worries. Nevertheless, the Bank of England left rates unchanged.
The U.S. central bank attempts to control inflation by increasing rates to boost the cost of borrowing money, which tends to dampen spending. A potential tightening of monetary policy could in turn impact credit card rates.
The CreditCards.com credit card rate survey is conducted each week using data from the leading credit card issuers in the United States.
Introductory offer periods and actual regular interest rates can vary depending on individual applicants' credit quality and issuer risk-based pricing policies.
CreditCards.com is the leading online credit card marketplace, bringing consumers and credit card issuers together. At its free website, www.creditcards.com, consumers can compare hundreds of credit card offers from the nation's leading issuers and banks, and apply securely online. CreditCards.com is also a destination site for consumers wanting to learn more about credit cards; offering news, advice, features, statistics and tools - all designed to help consumers make smart choices about credit cards.
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Ben Woolsey, 512-996-8663, ext. 106
Director of Marketing