KUALA LUMPUR: Malayan Banking Bhd, RHB Bank Bhd and CIMB Bank have announced they are lowering their base rates (BR) and base lending rates (BLR) by 25 basis points after Bank Negara Malaysia's reduction in the Overnight Policy Rate (OPR).
Maybank said on Tuesday its BR will be lowered from 2% per annum (p.a) to 1.75% p.a. while its BLR will be revised from 5.65% to 5.40% p.a on Thursday.
Similarly, the Islamic BR and base fnancing rate will be reduced by 25 basis points from 2% to 1.75% p.a and from 5.65% to 5.40% p.a respectively.
In line with the revision, Maybank and Maybank Islamic’s fixed deposit rates will also be adjusted downwards on Thursday.
The last revision in Maybank’s BR was on May 8, when it was revised from 2.50% to 2% p.a.
Meanwhile, RHB Banking Group's reduction in the BR and BLR will take effect next Monday, July 13.
RHB Bank Bhd, RHB Islamic Bank Bhd and RHB Investment Bank Bhd will reduce their BR from 2.75% to 2.50% p.a and will also revise the BLR from 5.70% to 5.45% p.a.
In line with the revision, RHB Bank’s fixed deposit rates will also be revised downwards by 25 basis points effective July 13.
Meanwhile, CIMB Bank Bhd and CIMB Islamic Bank Bhd (CIMB Islamic) will also reduce BR and fixed deposit / fixed return income account-i board Rates by 25bps.
"Similarly, all financing facilities based on BLR and Base Financing Rate (BFR) will be reduced by 0.25%. All rate changes will take effect on July 13.
On Tuesday, Bank Negara's monetary policy committee cut the OPR rate by 25 basis points to 1.75% as it expected the reduction to help speed the economic recovery.
The ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2% and 1.50%, respectively.
“The reduction in the OPR provides additional policy stimulus to accelerate the pace of economic recovery,” Bank Negara said, adding that economic activity contracted sharply in the second quarter of the year.
“The fiscal stimulus packages, alongside monetary and financial measures, will continue to underpin the improving economic outlook,” it said.
Most economists had expected a cut in the OPR by 25 basis points to 1.75% at the meeting.
With the 25bp reduction in the OPR on Tuesday, Bank Negara has cut it by 125 basis points over the past four meetings. At 1.75%, this was the lowest in Bloomberg's records dating back to 2004.
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