Hockey seeks brief on credit card interest

Treasurer Joe Hockey has asked his department for advice on how to address the growing gap between the official interest rate and credit card rates.

Since 2011, the average standard credit card purchase rate has remained relatively unchanged at 19.75 per cent, while the cash rate has dropped to a record-low of two per cent.

Mr Hockey said there was a lot of competition in the market, with more than 100 types of credit cards available.

However, he recognised there was public debate about the interest rate gap.

"I've asked the Treasury to provide me with further information on it," Mr Hockey told 2GB Radio on Friday.

"They are going to consult with the Reserve Bank and prudential regulator and ASIC (Australian Securities and Investments Commission) as well to find out a bit more information.

"But we want to make sure there is proper competition in this area."

A Senate estimates hearing this week was told Mr Hockey had been provided with an internal discussion paper on the issue by Treasury in March.

Treasury secretary John Fraser told the hearing it was worthwhile pursing a "deep" investigation into credit card interest rates.

He was concerned about the ability of many Australians to service their credit card debts.

The issue may be the subject of a Senate inquiry as well.