KUALA LUMPUR: More Malaysian banks have announced that their lending rates are being lowered in line with Bank Negara Malaysia's cut in its Overnight Policy Rate (OPR).
On Tuesday, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd became the first banks to immediately announce rates cut after the OPR was reduced by 50 basis points (bps) to 2.00 per cent.
Today, RHB Banking Group and Public Bank Bhd said they would reduce their base rate (BR) and base lending rate (BLR) by 50bps.
RHB said RHB Islamic Bank Bhd and RHB Investment Bank Bhd would lower their BR from 3.25 per cent to 2.75 per cent per annum, and the BLR from 6.20 per cent to 5.70 per cent per annum.
"In line with the revision, RHB Bank's fixed deposit rates will also be revised downwards by 50 basis points effective May 13," the group said in a statement.
Similarly, Public Bank said its fixed deposit rates would be adjusted by 50bps effective from May 12 this year.
Public Bank managing director and chief executive officer Tan Sri Tay Ah Lek said the year-to-date cumulative reduction in the base rate of 100bps would assist in easing borrowers' burden.
Tay said this was especially significant under the current challenging period brought about by the Covid-19 outbreak.
He added that the enforcement of the movement control order was necessary to stem the outbreak.
"This, coupled with the government's fiscal stimulus and Bank Negara's financial relief measures, will lend support to the economy, enabling gradual recovery in economic activities," he added.
Meanwhile, Maybank president and chief executive officer Datuk Abdul Farid Alias on Tuesday said the reduction was another step to support the country's economic recovery.
"We believe that borrowers will benefit from this additional relief in their loan or financing payments especially during this challenging period," he said.
Maybank said effective from Friday, its BR would be lowered from 2.50 per cent per annum to 2.00 per cent per annum, while its BLR from 6.15 per cent to 5.65 per cent.
Similarly, the banks's Islamic BR and base financing rate (BFR) would be reduced from 2.50 per cent to 2.00 per annum and from 6.15 per cent to 5.65 per cent respectively.
Maybank Islamic's fixed deposit rates will also be adjusted downwards by 50bps.
CIMB Bank Bhd and CIMB Islamic Bank Bhd will effect a corresponding 50bps reduction in their BR and fixed deposit/fixed return income account-i board rates.
CIMB said all financing facilities based on BLR and BFR would be reduced by 0.50 per cent to "help achieve the corresponding effect of monetary policy transmission intent by Bank Negara's Monetary Policy Committee."
All rate changes would take effect on May 13, said the bank.
"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," CIMB added.