Banks start to adjust lending rates

Posted at 08/22/14 10:43 AM

MANILA, Philippines - Banks have started to adjust their lending rates, a month after the Bangko Sentral raised its key policy rates.

Higher lending rates mean borrowers will pay more interest to secure loans for housing or cars.

"We are seeing some signs that banks are beginning to adjust rates. For instance, you may have noticed that the number of ads put out for very aggressive low interest rates on consumer loans have declined,"
BSP Governor Amando Tetangco said.

How fast banks would make adjustments is a business decision.

Last July 31, the BSP increased its key policy rates by 25 basis points to manage price pressures. - ANC