BCR raises the base interest rate again, how will this affect us?

The Central Reserve Bank (BCR) has announced that it has raised its benchmark interest rate to 6.75%, hitting an all-time high, but what does that mean?

The interest rate is used as a tool to control high inflation, which is registered and has a special impact on Financial system.

Now it’s more expensive to borrow

When the BCR reference rate rises, the interest rates applied by banks, savings banks and financial companies on the loans they offer rise, which means that borrowing becomes more expensive.

A few weeks ago, SBS reported that interest rate credit cards topped 60% a year, while home loans rose to 9%, the highest level in six years.

For example: Applying for a mortgage loan of just over 300 thousand soles for a period of 20 years involves paying banks from 2700 to 3700 soles per month, according to the platform. comparabien.com.pe

Previously, in 2021, when the rate dropped to around 6%, the monthly cost was much lower. The people who applied for mortgage from 300,000 thousand to 20 years, they had to pay approximately SGD 2,122.

Saving gives you more

However, not everything is so negative. The Banking, Insurance and AFP (SBS) indicates that the average interest rate offered by banks and other financial institutions to those who invest their Money also increased significantly.

Over the past 12 months, the rate that customers earn by leaving their savings in the bank for a period of one year has increased from an average of 1.34% to 6.35%, with some organizations even offering an income of 9%.

This means that, for example, if before saving 3 thousand salts in organization you used to earn about 40 soles a year, now you could earn up to 270 soles.

Currently, the type of account that earns the highest interest rate is indicated to be term deposits, especially in financial and savings accounts.