KUALA LUMPUR: CIMB Group Holdings Bhd’s subsidiaries, CIMB Bank Bhd and CIMB Islamic Bank Bhd will be reducing base and fixed deposit rates by 25 basis points in response to Bank Negara Malaysia’s overnight policy rate (OPR) decrease to three per cent.
Similarly, loans and financing based on base lending rate (BLR) and base financing rate (BFR) will be reduced by 0.25 per cent.
The group said the reduction across the board effective May 15 is to help achieve the corresponding effect of monetary policy transmission intent by Bank Negara's Monetary Policy Committee.
Group chief executive officer Tengku Datuk Seri Zafrul Aziz said the OPR cut will encourage investments and consumption to spur the Malaysian economy.
“Most importantly, our corresponding 0.25 per cent 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," he said in a statement.
On May 7, MPC of Bank Negara decided to reduce the OPR, the first cut in three years, at its meeting.
The ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.25 per cent and 2.75 per cent respectively.