Credit Card Association of the Philippines welcomes hike in monthly charges

ABS-CBN News

Posted at Jan 23 2023 02:10 PM

MANILA - The Credit Card Association of the Philippines said on Monday it welcomes the decision of the Bangko Sentral ng Pilipinas to raise the ceiling on credit card monthly interest rates to 3 percent.

The BSP announced last Friday that it had raised the monthly ceiling for credit card charges. This was in step with the BSP's higher benchmark rate, which is now at 5.5 percent from a low of 2 percent.

"It [CCAP] believes the recent MB [Monetary Board] decision to ease the monthly interest rate cap on credit cards is part of the BSP's calibrated responses to the present economic situation," the umbrella organization of 17 credit card issuers said in a statement.

CCAP said it is also backing BSP's move to use its monetary tools to help Filipinos and small businesses cope with rising consumer prices, and boost consumption and economic recovery.

The BSP last month raised the key policy rate to tame inflation which accelerated to 8.1 percent in December 2022. 

CCAP said credit cards are also a crucial tool in the overall digitalization goal of the country. 

The BSP aims to digitalize 50 percent of all retail payments and onboard 70 percent of the adult population to the formal banking system this year.

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