Consumers debt-shy

Australians remain cautious about taking on new debt despite the Reserve Bank slashing the cash rate to a record low, with the value of credit card purchases falling to their March levels. The value of credit card purchases in June fell to $20.3 billion, down from $22.6 billion in May, RBA statistics released on Monday showed.

By InvestSMART · 13 Aug 2013

By InvestSMART ·
13 Aug 2013

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Frequently Asked Questions about this Article…

What action did the Reserve Bank of Australia (RBA) take on the cash rate?

The article reports the RBA slashed the cash rate to a record low.

How did credit card purchases change in June according to the RBA statistics?

RBA statistics show the value of credit card purchases in June fell to $20.3 billion, down from $22.6 billion in May.

What does it mean that credit card purchases 'fell to their March levels'?

The article indicates June credit card spending dropped back to the same level recorded in March, meaning the June figure matched March's value.

By how much did credit card spending drop between May and June?

Credit card spending fell by $2.3 billion from May to June, which is roughly a 10.2% decrease based on the figures reported.

Does the article say Australians are taking on more debt after the RBA rate cut?

No. Despite the RBA cutting the cash rate to a record low, the article says Australians remain cautious about taking on new debt.

When were these RBA statistics on credit card purchases released?

The article states the RBA statistics were released on Monday.

What does this trend in credit card spending mean for everyday investors?

The article itself does not provide direct investment advice, but it highlights weaker consumer credit card spending and continuing caution about new debt—data points everyday investors can monitor when assessing consumer-facing businesses and retail sector performance.

Where did the figures in the article come from?

The figures cited for credit card purchases come from Reserve Bank of Australia statistics referenced in the article.