Bank Muamalat Malaysia Bhd is reducing its base rate (BR) and base financing rate (BFR) by 25 basis points from 4.06% and 7.06% annually to 3.81% and 6.81% annually respectively.

The fixed term deposit rate (FTA) would also be revised downwards by up to 25 basis points, it said.

"This will effectively impact all floating rate financing packages pegged to BR and BFR," the bank said in a statement on 14 May.

It said the changes were made in line with Bank Negara Malaysia's recent decision to decrease the Overnight Policy Rate to 3.00% with effect from May 7, 2019.

Bank Muamalat also notified that its current Home Financing package for 30 years maturity for best customers with no lock-in period and financing amount of RM350,000, will be BR +1.00% for the whole tenure, subject to ceiling rate of 10.50% and the bank's standard mortgage terms and conditions.