Maybank lowers interest rates to 3%

Maybank Group president and chief executive officer Datuk Abdul Farid Alias

KUALA LUMPUR: Malayan Banking Bhd is lowering the interest rates for loans and savings by 20 basis points with effect from Friday.

It said the base rate (BR) will belowered by 20 basis points from 3.20% per annum to 3% per annum while its base lending rate (BLR) will also be revised from 6.85% to 6.65% per annum.

The Islamic base rate and base financing rate will be reduced by 20 basis points to 3% per annum and 6.65% per annumn respectively from 3.20% and 6.85% previously.

The move by the country's largest bank followed Bank Negara Malaysia's (BNM) unexpected move to reduce the Overnight Policy Rate (OPR) by 25 basis points to 3% at its Monetary Policy Committee (MPC) meeting, citing rising risks from Britain's exit from the European Union.

BNM said the ceiling and floor rates of the corridor for the OPR were correspondingly reduced to 3.25% and 2.75% respectively.

In a statement issued on Thursday, Maybank's group president & CEO, Datuk Abdul Farid Alias said the revision in Maybank's rates will benefit borrowers as all loans/financing pegged to the base rates or BLR/BFR would also be adjusted accordingly.

"This revision will assist existing and potential borrowers contend with the current challenging environment and help spur economic and business growth in the country," he said.

"We believe it will also support the government's efforts to ensure that the domestic economy can continue on a steady growth path."

In line with the reduction in BLR/BFR and base rates, Maybank's deposit rates will also be revised downwards by up to 20 basis points.

The last revision in Maybank's BLR was in July 2014 when it was raised by 25 basis points to 6.85% per annum.