#Interest

The Bangko Sentral ng Pilipinas' Monetary Board has recently approved the 24% annual interest rate ceiling, or 2% monthly, on all credit card charges. Based on the circular 1098 of Bangko Sentral ng Pilipinas, interest rates or charges on a cardholder's unpaid credit card balance should not exceed 2% per month. “The interest rate cap on credit card receivables aims to ease the financial burden of consumers and micro, small and medium enterprises amid a difficult economic environment caused by the COVID-19 pandemic,” said Bangko Sentral ng Pilipinas Governor Benjamin Diokno. BSP Governor Diokno also twitted about the announcement made, mentioning aim to keep the country's low-interest rate. Yesterday, I announced the ceiling on interest or finance charges for credit card receivables, which should not exceed two percent per month. This is in keeping with the country’s current low interest rate environment. — Benjamin Diokno (@GovBenDiokno) September 25, 2020 The interest rate on the BSP’s overnight reverse repurchase (RRP) facility retains at 2.25% which has been the lowest policy rate since the pandemic started. The order also waives the requirement for credit card issuers to notify the cardholder of the said changes on interest or finance charges at least 90 calendar days before its implementation. Read more in our articles including "Bangko Sentral ng Pilipinas puts ceiling on credit card charges" and "HONOR 600 series launched, priced in the Philippines".