The Central Reserve Bank (BCR) announced that it raised the reference interest rate to 6.75%, reaching an all-time high, but what does this mean?
The interest rate is used as a tool to control the high inflation that is registered and has a special impact on the Finance system.
Now it is more expensive to borrow
By raising the reference rate of the BCRthe interest rates applied by banks, savings banks and finance companies on the loans they offer rise, that is, it is more expensive to borrow.
A few weeks ago the SBS reported that the interest rate of credit cards exceeded 60% annually, while loans to buy a home rose to 9%, its highest level in six years.
For example: Asking for a mortgage of just over 300 thousand soles for a term of 20 years implies paying banks between 2,700 and 3,700 soles per month, according to data from the platform comparabien.com.pe
Before, in 2021, when the rate dropped to about 6%, the monthly cost was much lower. Those people who applied for a mortgage credit from 300,000 thousand to 20 years they had to pay approximately S/ 2,122.
Savings yield more
However, not everything is negative. The Superintendence of Banking, Insurance and AFPs (SBS) indicates that the average interest offered by banks and other financial entities to whom they deposit their money has also risen considerably.
In the last 12 months, the rate that customers earn for leaving their savings in the bank for a term of one year rose from 1.34% to 6.35% on average, and even some entities offer a yield of 9%.
This means that, for example, if before saving 3 thousand soles in a entity you used to earn about 40 soles in a year, now you could earn up to 270 soles.
Currently it is indicated that the type of account that yields the most interest is the time depositsespecially in financial and savings banks.