Malaysian Banks Reduce Base Rates, FD Rates After OPR Cut

major banks
(Image: Bernama)
major banks
(Image: Bernama)

(Article updated with revised BR, BLR, and BFR rates for OCBC Bank and Muamalat Bank on 31 January 2020.)

Major banks around the country have announced that they are lowering their base rate (BR) and base lending rate (BLR). This follows on from the recent announcement by Bank Negara Malaysia (BNM) that slashed the overnight policy rate (OPR) by 25 basis points to 2.75%.

As such, these will be the new rates for the following banks:

Maybank

maybank
(Image: The Star)
Rates Before
OPR Cut (%)
New Rates (%)
Base Rate/Islamic Base Rate 3.00 2.75
Base Lending Rate/Islamic Base Financing Rate 6.65 6.40

Deposit rates will also decrease by 0.25%.

All new rates will be effective from 24 January 2020 onwards.

Public Bank

public bank-1
(Image: The Edge Markets)
Rates Before
OPR Cut (%)
New Rates (%)
Base Rate 3.52 3.27
Base Lending Rate 6.72 6.47

Deposit rates will also decrease by 0.25%.

All new rates will be effective from 28 January 2020 onwards.

RHB Bank, RHB Islamic Bank, and RHB Investment Bank

rhb-1
(Image: The Borneo Post)
Rates Before
OPR Cut (%)
New Rates (%)
Base Rate 3.75 3.50
Base Lending Rate 6.70 6.45

Deposit rates will also decrease by 0.25%.

All new rates will be effective from 29 January 2020 onwards.

OCBC Bank and OCBC Al-Amin Bank

OCBC

Rates Before
OPR Cut (%)
New Rates (%)
Base Rate 3.83 3.58
Base Lending Rate/Islamic Base Financing Rate 6.76 6.51

Deposit rates will also decrease by 0.25%.

All new rates will be effective from 29 January 2020 onwards.

CIMB Bank and CIMB Islamic Bank

cimb-branch-1
(Image: New Straits Times)
Rates Before
OPR Cut (%)
New Rates (%)
Base Rate 4.00 3.75
Base Lending Rate 6.85 6.60

Deposit rates will also decrease by 0.25%.

All new rates will be effective from 30 January 2020 onwards.

Hong Leong Bank and Hong Leong Islamic Bank Bhd

hong leong bank-1
(Image: The Malaysian Reserve)
Rates Before
OPR Cut (%)
New Rates (%)
Base Rate 3.88 3.63
Base Lending Rate/Islamic Base Financing Rate 6.89 6.64

Deposit rates will also decrease by 0.25%.

All new rates will be effective from 31 January 2020 onwards.

Bank Muamalat

bank muamalat
(Image: The Malaysian Reserve)
Rates Before
OPR Cut (%)
New Rates (%)
Base Rate 3.81 3.56
Islamic Base Financing Rate 6.81 6.56

Deposit rates will also decrease by 0.25%.

All new rates will be effective from 31 January 2020 onwards.

***

If you’re wondering, the Base Rate or BR is the current reference rate that a bank refers to before it decides on the interest rate your loans. Before 2015, it was the Base Lending Rate or BLR that served as the main reference rate; as loans taken out prior to 2015 continue to be referenced against the BLR, banks are obligated to display both the BR and BLR to their customers.

The reduction of the OPR, and subsequently the BR and BLR, will have a widespread effect on all Malaysians who have dealings with the banks.

(Source: Bernama, Bank Negara Malaysia)

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