Standard reference rate for new retail floating loans from August next year

KUALA LUMPUR (Bernama) -- Bank Negara has released the revised Reference Rate Framework, under which the Standardised Base Rate will replace the Base Rate (BR) as the reference rate for new retail floating-rate loans from Aug 1, 2022.

The central bank said under the revised Reference Rate Framework, the Standardised Base Rate will be used as the common reference rate for all financial institutions for their new retail floating-rate loans and will be linked solely to the overnight policy rate (OPR).

Changes to the Standardised Base Rate will therefore only occur following changes in the OPR, which is determined by Bank Negara’s monetary policy committee, it added.

Governor Datuk Nor Shamsiah Mohd Yunus said consumers would find it easier to understand changes in their loan repayments as the OPR will be the only driver of the Standardised Base Rate.