KUALA LUMPUR (May 5): CIMB Group Holdings Bhd and Malayan Banking Bhd (Maybank) will be reducing their base rate (BR) and base lending rate (BLR) by 50 basis points (bps), in line with Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) cut today.
In a statement, CIMB Group said both CIMB Bank Bhd and CIMB Islamic Bank Bhd would be cutting their BR, fixed deposit (FD) and Fixed Return Income Account-i Board rates by 0.5%.
Similarly, all financing activities based on its BLR and base financing rate (BFR) will also be reduced by 0.5%.
According to CIMB's website, its BR is currently 3.5% while its BLR and BFR is currently 6.35%.
All rate changes will take effect on May 13.
“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.
“In doing our part, CIMB aims to help customers and communities tackle cash flow issues by providing various financial programmes, in line with government policies, during this most crucial period,” said CIMB.
Separately, Maybank announced that it will be reducing its BR and BLR by 50bps effective May 8 to 2%, from 2.50% per annum, while its BLR will also be lowered to 5.65% per annum from 6.15% per annum.
Likewise, its Islamic BR will also be reduced downwards to 2% per annum from 2.5% per annum previously while the BFR will drop to 5.65% per annum, from 6.15% per annum previously.
Meanwhile, fixed deposit rates for both conventional and Islamic fixed deposits will also go down by 50 bps.
Maybank president and chief executive officer (CEO) Datuk Abdul Farid Alias said the reduction is another step to support the country’s economy.
“This reduction is another step to help support economic recovery in the country, and we believe that borrowers will benefit from this additional relief in their loan or financing payments especially during this challenging period,” he said.
BNM announced today that the OPR would be cut by 50bps to 2%, from 2.5% previously amid pandemic concerns. This is the lowest OPR in 10 years.
Shares in CIMB closed 0.59% or two sen higher at RM3.43 per share, valuing it at RM34.14 billion.
Maybank closed 1.36% or 10 sen higher at RM7.48, giving it a market capitalisation of RM84.31 billion.