Microfinance lender BanKo to keep loan rates unchanged

Interest rates of BPI Direct BanKo, microfinance subsidiary of Bank of the Philippine Islands, is keeping its interest rate unchnaged despite a recent central bank move to raise policy rates by 50 basis points.

BanKo head of Micro-Enterprise Lending Rodolfo Mabiasen Jr. said on Monday the bank will continue to lend at interest rates of 2 to 3.3 percent.

“The way our economists see it, as long as the interest rates do not go higher than a certain hurdle, we will still be able to maintain our interest rates,” he told reporters during a press briefing.

He declined to elaborate on the threshold set by the lender, but Mabiasen said the bank can afford to maintain its interest rates.

The Bangko Sentral ng Pilipinas (BSP) raised its key policy rates anew, its third and most aggressive move so far this year, in light of persistent inflationary concerns.

Policy rates were raised by 50 basis points to 4.00 percent for overnight borrowing, 4.50 percent for overnight lending, and 3.50 percent for overnight deposits.

“For now, we will keep our interest rates at 2 to 3.3 percent. Hopefully (monetary policy) doesn’t go higher than what we fear for us to be able to keep our interest rates," Mabiasen said. —VDS, GMA News