BSP Hikes Rates by 0.5%

On December 15, the BSP raised key interest rates by another 50 basis points (0.5%) to rein on inflation and protect the peso. The BSP has increased rates by 300 basis points so far in 2022.

Let's put some perspective on this.

If you were a buyer and intended to get a loan BEFORE all the rate hikes this year, you would have paid a monthly amortization of Php40,854 for a 15-year, Php5 Mn loan. After the rate hikes, the monthly amortization would have risen by Php9,859, and total interest payments would have increased by Php1.74 Mn.