In response to Bank Negara Malaysia’s (BNM) Overnight Policy Rate (OPR) decrease of 25 basis points from 3.25 percent to 3.00 percent on Tuesday, Malaysian banks have also revised their rates.
CIMB Bank Berhad and CIMB Islamic Bank Berhad will be reducing its Base Rate and Fixed Deposit / Fixed Return Income Account-i Board Rates by 25 basis points. 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 BNM’s Monetary Policy Committee. All rate changes will take effect on 15 May 2019.
Group CEO, CIMB Group, Tengku Dato’ Sri Zafrul Aziz said, “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.”
Meanwhile, Bank Islam Malaysia Berhad (“Bank Islam”) is revising its Base Rate (“BR”) by 26 basis points from 4.03 per cent to 3.77 percent per annum, while its Base Financing Rate (“BFR”) is reduced from 6.98 percent to 6.72 percent per annum with effect from 10 May 2019.
Bank Islam’s Chief Executive Officer, Encik Mohd Muazzam Mohamed said,”The rate revision will be beneficial to our customers who have financing pegged to the BR / BFR as the effective profit rate will be adjusted downwards accordingly which translates to a lower instalment amount. This is in line with the recent government aspiration to help improve the people’s cost of living as well as boosting economic activities.”