The high credit needs of MSMEs and the upcoming holiday season will ensure that demand for business loans as well as consumer demand for goods across the Philippines remain high despite the Bangko Sentral ng Pilipinas (BSP) hiking cost of borrowings by 75 basis points effective Friday. Revealing this, the Rural Bankers Association of the Philippines (RBAP) said that MSMEs are still applying for loans even after the Philippine Central Bank has bumped up the key interest rate to 5% with effect from November 18. Meanwhile, the retail sector would remain in a good state as Filipinos are expected to do their shopping for the approaching holiday season.
