CIMB lowers base rate by 0.25% after OPR cut

CIMB Group Holdings Bhd is said to be hiring Rafe Haneef from HSBC Amanah Malaysia Bhd to lead its Islamic banking unit.

KUALA LUMPUR: CIMB Bank Bhd and CIMB Islamic Bank Bhd have reduced their base rate (BR), base lending rate (BLR) in response to Bank Negara Malaysia’s overnight policy rate (OPR) decrease of 25 basis points to 3% from 3.25%.

In a statement, CIMB said there would be a corresponding 25-basis points reduction in its base rate and fixed deposit / fixed return income account-i board rates.

“Similarly, loans and financing based on base lending rate (BLR) and base financing rate (BFR) respectively will be reduced by 0.25%.

"The 0.25% reduction across the board is to help achieve the corresponding effect of monetary policy transmission intent by Bank Negara’s Monetary Policy Committee,” it said. 

All rate changes will take effect on May 15..

“The OPR cut will encourage investments and consumption to spur the Malaysian economy. Most importantly, our corresponding 0.25% reduction in applicable rates will ease the burden of borrowers, particularly in the face of current challenges in the domestic economy due to spillover effects from fresh US-China trade tensions and global uncertainties,” group CEO Tengku Datuk Seri Zafrul Aziz said.