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Credit card interest rate cap 'eases burden' of Filipinos hit by pandemic: BAP

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ABS-CBN News

MANILA - The cap on credit card interest rate will help reduce the burden of Filipinos reeling from the impact of the COVID-19 pandemic, the Bankers Association of the Philippines said Friday. Credit card policy reform is crucial especially during this difficult time, BAP said in a statement. &quot;We support this initiative by the Bangko Sentral ng Pilipinas. This will help ease the burden of every household including businesses affected by the pandemic,&quot; BAP managing director Banjamin Castillo said.The Bangko Sentral ng Pilipinas on Thursday said it would put a cap on interest rate that banks were allowed to charge for credit cards at 24 percent per annum starting Nov. 3, equivalent to an interest rate of 2 percent per month.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/09/24/20/bangko-sentral-caps-credit-card-interest-rates-at-2-percent-per-month">Bangko Sentral caps credit card interest rates at 2 percent per month</a></li></ul>BSP Gov. Benjamin Diokno earlier said high credit card interest rates in the country that goes up to 40 percent were &quot;<a href="https://news.abs-cbn.com/business/08/24/20/bangko-sentral-mulls-cap-on-credit-card-interest-rates">unacceptable</a>.&quot;The interest rate cap for credit cards is unlikely to hurt the income of banks and card issuers, the central bank said. BAP also lauded the BSP for its &quot;decisive and aggressive&quot; actions. The BSP earlier brought the overnight borrowing rate to its all-time low of 2.25 percent.

The cap on credit card interest rate will help reduce the burden of Filipinos reeling from the impact of the COVID-19 pandemic, the Bankers Association of the Philippines said Friday.

The cap on credit card interest rate will help reduce the burden of Filipinos reeling from the impact of the COVID-19 pandemic, the Bankers Association of the Philippines said Friday.