Credit card rate hike welcomed

THE Credit Card Association of the Philippines (CCAP) welcomed the government's decision to raise the monthly interest rate ceiling on credit cards to 3 percent from the 2 percent starting next month.

The Monetary Board (MB), the policymaking body of the Bangko Sentral ng Pilipinas (BSP), issued Resolution 55 last January 13 raising the maximum interest rate or finance charge imposed on a cardholder's unpaid outstanding credit card balance by 100 basis points to 3 percent from 2 percent per month or 36 percent per annum.