CIMB Bank Berhad and CIMB Islamic Bank Berhad will effect a corresponding 50-basis point reduction in their Base Rate and Fixed Deposit and Fixed Return Income Account-i Board Rates.
This comes after Bank Negara Malaysia’s had reduced their Overnight Policy Rate (“OPR”) by 50 basis points from 2.50 percent to 2.00 percent on May 5.
The bank has also announced that all financing facilities based on Base Lending Rate (“BLR”) and Base Financing Rate (“BFR”) will be reduced by 0.50 percent.
Furthermore, the 0.50 percent reduction 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 May 13.
“This third OPR cut for 2020 is essential to bolster the Malaysian economy amid the subdued domestic and global economies coupled with plunging oil prices. This step, together with the government’s economic stimulus package, will lower the cost of borrowings and boost spending power for individuals and businesses to eventually help spur the domestic economy,” the Group said in a statement.
“In doing our part, CIMB aims to help customers and communities tackle cash flow issues by providing various financial programmes, in line with government policies, during this most crucial period,” it added.