The Credit Card Association of the Philippines, the umbrella organization of 17 major credit card companies in the country, welcomed the decision of the Bangko Sentral ng Pilipinas to raise the monthly interest rate ceiling on credit cards to 3 percent from 2 percent imposed in November 2020.
CCAP said in a statement it continued to support the BSP’s mandate of maintaining monetary stability and the overall soundness of the Philippine financial system. It said the recent 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.
“CCAP backs the BSP in pursuing various options using monetary tools to help many Filipinos, particularly the micro, small and medium enterprises, cope with rising consumer prices; boost consumption and tourism; and ultimately aid in the country’s economic recovery,” it said.
“With the pandemic spurring the rapid adoption of consumers of new virtual payment technologies, credit cards serve as an effective, safe and convenient payment tool that drives and contributes to the overall digitization goal of the country,” it said.