Bank rates across Malaysia are once again being lowered as Bank Negara Malaysia (BNM) monetary policy committee cut the overnight policy rate (OPR) rate by 25 basis points to help speed the economic recovery.
“The reduction in the OPR provides additional policy stimulus to accelerate the pace of economic recovery, ” it said on Tuesday after announcing that the ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2% and 1.50%, respectively. It added that economic activity contracted sharply in the second quarter of the year.
Furthermore, Malayan Banking Bhd (Maybank) will lower its base rate (BR) and base lending rate (BLR) by 25 basis points (bps), effective July 9, 2020. Similarly, the Islamic BR and Base Financing Rate will be reduced by 25 basis points to 1.75 per cent from 2.00 per cent and to 5.40 per cent from 5.65 per cent, respectively.
In a separate statement, RHB Banking Group said it has also revised its BR and BLR downwards by 25 basis points, effective July 13, 2020.
RHB Bank Bhd (RHB), RHB Islamic Bank Bhd and RHB Investment Bank Bhd will reduce the BR from 2.75 per cent to 2.50 per cent per annum, and will also revise the BLR from 5.70 per cent to 5.45 per cent per annum.
“Following the gradual and progressive re-opening of the economy since early May, economic activities have begun to recover from the trough in the second quarter. The fiscal stimulus packages, alongside monetary and financial measures, will continue to underpin the improving economic outlook, ” BNM said.
"Bank Negara Cuts Overnight Policy Rate By 25Bps To 1.75%". The Star Online, 2020, https://www.thestar.com.my/business/business-news/2020/07/07/bank-negara-cuts-overnight-policy-rate-by-25bps-to-175.
"Maybank, RHB To Lower Base Rate, BLR By 25Bps | Malay Mail". Malaymail.Com, 2020, https://www.malaymail.com/news/money/2020/07/07/maybank-rhb-to-lower-base-rate-blr-by-25bps/1882378?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook#Echobox=1594122987.