ANZ CEO points to rise in credit card use

Consumers feel more confident about borrowing, according to one banking expert.

Improvements in the Aussie credit market have been noted, it has been reported.

ANZ Banking Group chief executive Mike Smith points out that "confidence is returning" to the sector, as he states there has been a rise in the use of credit cards over recent weeks.

Mr Smith also claims that loan demand is on the up, as those after such products may want to compare accounts in order to ensure they get a good deal.

However, although the upturn in consumer optimism in the build-up to Christmas has been deemed as encouraging, he suggests demand for borrowing has "tempered a little bit" by the Reserve Bank of Australia (RBA) imposing further interest rate increases, the Australian Associated Press reports.

Indeed, the RBA recently revealed that some $19.189 billion was spent via credit and charge cards in October, compared to the $19.246 billion expenditure noted in September.

The executive goes on to suggest that although the base rate will rise in the medium term, the speed of such growth remains uncertain.

By Kate Guthrie