PETALING JAYA, 18 July: CIMB Group Holdings Bhd and AMMB Holdings Bhd (AmBank) are the two latest banks which announced that they will be reducing their respective base rates (BR) and base lending rates (BLR) by 20 basis points each following the cut in the Overnight Policy Rate (OPR) last week.
CIMB’s reduction will take effect on Friday, while AmBank’s new rates are effective as of today.
AmBank’s BR is reduced to 3.8%, while its BLR will go down to 6.65%. CIMB’s BR will be reduced from 4.1% to 3.9% per annum and its BLR/base financing rate will be lowered from 6.95% to 6.75% per annum.
Deposit rates for both CIMB and AmBank will be brought down by up to 20bps, the banks said in separate statements.
Last Thursday, Maybank announced a reduction in its BR and BLR by the same quantum of 20 basis points.
AmBank Group CEO Datuk Sulaiman Mohd Tahir and CIMB Group CEO Tengku Datuk Seri Zafrul Aziz Tengku Abdul Aziz applauded the move made by Bank Negara Malaysia.
Sulaiman said the central bank’s decision to reduce the OPR comes at the right time and will have positive ramifications for consumers as well as the Malaysian economy.
While deposits will be less attractive moving forward, he said, consumers can explore other investment opportunities such as unit trusts and wealth management products which can potentially yield higher earnings.
Meanwhile, Tengku Zafrul said “Bank Negara’s pre-emptive decision to reduce the OPR is both timely and strategic, given the current challenges faced by the domestic economy due to possible spillover effects from global uncertainties.
“We support this accommodative monetary policy that encourages investments and is favourable to borrowers and consumers to improve prospects moving forward. This cut will also reduce the risk of external imbalances, in view of the general decline in global interest rates.”