The Bangko Sentral ng Pilipinas has raised the interest cap on credit card transactions to 3 percent a month or 36 percent a year.
This comes from a cap of 2 percent per month or 24 percent per year, which the BSP imposed to help consumers when they were enduring the brunt of the COVID-19 pandemic.The Monetary Board, however, kept the ceiling on the monthly add-on rate that credit card issuers can charge on installment loans is maintained at 1 percent.
Mapa said bank lending sustained growth in 2022 despite aggressive policy rate hikes thanks to the reopening of the Philippine economy and also because the credit card rates were unchanged.Meanwhile, Pantheon Macroeconomics is already seeing a “material deterioration in domestic demand,” gleaned from an ongoing decline in the Philippines’ trade deficit.
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