Citi on alert for spending pull-back due to rising costs

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Citi on alert for spending pull-back due to rising costs
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Credit card giant Citi says while customers are in good shape today, it will be looking out for softer discretionary spending on credit cards later this year. spending creditcards

Banking giant Citi is closely watching for a potential softening in consumer spending later this year due to rising interest rates and cost of living pressures, ahead of its formal exit from Australia’s retail banking market.

“People are looking forward – their rent’s going up, their mortgage payments are going up, their food bill is going up, their fuel, everything is going up – and they’re starting to get nervous,” Machet said. Pending final approvals, it will formally end its 37-year presence in Australian retail banking this week, with the business and its 800 staff set to become part of NAB,Citi, which has also announced plans to withdraw from 13 retail banking markets globally, will continue to serve Australian institutional clients, such as corporations and governments.

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