In its official statement released to the press, Standard Chartered Malaysia has stated that the bank is increasing its base rate and base lending rate by 25 basis points to 2.52% and 5.7% respectively effective 19 May 2022.
The rate adjustment of 0.25% will also apply to the Bank’s Fixed Deposits interest and Term Deposits-i profit rates across all tenors.
Meanwhile, the bank is also raising its Islamic base rate and base financing rate by 25 basis points to 2.52% and 5.7% per annum respectively.
This comes following the Monetary Policy Committee’s decision to increase the Overnight Policy Rate (OPR) by 25 basis points to 2%. With the sustained reopening of the global economy and improvement in labour market conditions continuing to support the recovery of economic activity, Bank Negara Malaysia has expressed confidence that the transition to endemicity would further strengthen economic activity.
“The rate hike indicates the start of a normalisation process by the central bank following the reduction of the OPR to a historic low of 1.75% to cope with the COVID-19 crisis,” Abrar A. Anwar, Managing Director and Chief Executive Officer of Standard Chartered Malaysia commented.
“This is a positive indicator of the country’s economic recovery, which has been showing signs of more stable growth backed by lower unemployment rates and improved investment activity. The reopening of international borders and easing of containment measures will help to sustain Malaysia’s economic growth,” he concluded.
