KUALA LUMPUR (July 8): More banks have announced a 25 basis points (bps) cut in their base rate (BR) and base lending rate (BLR) following Bank Negara Malaysia’s 25 bps reduction in the Overnight Policy Rate (OPR).

Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd (HLISB) said they will reduce their BR and Islamic BR to 2.63% from 2.88% effective July 10.

In a statement, they said their Base Lending Rate (BLR) and Islamic Financing Rate will be lowered to 5.64% from 5.89%, with a similar 25 bps cut in the board rates of its fixed deposits.

Domenic Fuda, group managing director and CEO of Hong Leong Bank said: “Cash flow remains a serious concern especially for certain sections of the business community and households which are continuing to deal with a heavy blow to their finances amidst the weaker economy, job losses and employment prospects.

“This further reduction in interest rates will provide additional stimulus to accelerate the pace of the economic recovery in the second half of 2020.”

The Monetary Policy Committee of Bank Negara Malaysia yesterday cut the OPR by 25 bps to 1.75%. This is the fourth time this year that the key interest rate was cut.

Meanwhile, Bank Islam Malaysia Bhd said it is revising its BR by 25 bps to 2.52% from 2.77%, and its Base Financing Rate to 5.47% from 5.72% effective July 10.

Its deposit rates will also be adjusted downwards by 25 bps, the bank said in a statement.

Bank Islam CEO Mohd Muazzam Mohamed said, “The revision is timely as the moratorium period is coming to an end. We foresee that this move will cushion the post-moratorium impact to majority of our customers by easing their monthly instalment commitments.”

Similarly, Public Bank Bhd and Public Islamic Bank Bhd said they will reduce their BR and BLR by 0.25% effective July 10. The bank’s fixed deposit rates will also be correspondingly adjusted by 25bps.

Public Bank CEO Tan Sri Tay Ah Lek said in a statement: “The 25 bps cut in OPR will further stimulate the country’s economic recovery process. Public Bank is committed to provide continuous financial assistance to its customers to tide over this unprecedented challenging period.”

Separately, Standard Chartered Malaysia Bhd and Standard Chartered Saadiq Bhd said they are bringing down their BR to 2.27% and BLR/base financing rate to 5.45%.

“The downward revision of 25 basis points will take effect on July 14, and also applies to the Fixed Deposits interest and Term Deposits-i profit rates across all tenors,” they said in a statement.