KUALA LUMPUR (May 11): Malayan Banking Bhd (Maybank) and RHB Banking Group have announced they will be revising their base rate (BR) and base lending rate (BLR) upwards by 25 basis points (bps).
This is in line with Bank Negara Malaysia's move to raise the overnight policy rate (OPR) by 25bps to 2%.
Maybank said it will revise upwards its rate effective May 13, while RHB will be doing so on May 18, according to their respective statements.
Maybank noted its BR will be raised from 1.75% per annum (p.a.) to 2% p.a. while its BLR will be revised from 5.4% p.a to 5.65% p.a.
Similarly, Maybank's Islamic BR and base financing rate (BFR) will be increased by 25bps from 1.75% p.a. to 2% p.a. and from 5.4% p.a. to 5.65% p.a. respectively.
"In line with the revision, Maybank and Maybank Islamic's fixed deposit rates will also be adjusted upwards effective May 13," said Maybank.
The last revision of Maybank's BR was seen on July 9, 2020 when it was reduced from 2% p.a. to 1.75% p.a. following the drop in OPR by the same quantum.
Meanwhile, RHB Bank Bhd, RHB Islamic Bank Bhd and RHB Investment Bank Bhd will increase BR from 2.5% p.a. to 2.75% p.a., and will also revise the BLR and BFR from 5.45% to 5.7% per annum, respectively.
"In line with the revision, RHB Bank and RHB Islamic Bank's fixed deposit rates will also be revised upwards effective the same date," added RHB.
BNM's Monetary Policy Committee announced on Wednesday (May 11) an increase in the OPR by 25bps to 2% from a record low of 1.75%.
The ceiling and floor rates of the OPR's corridor are correspondingly increased to 2.25% and 1.75% respectively, according to BNM.
The OPR at 1.75% was the lowest on record, according to BNM data dating back to 2004 on the central bank's website.
The OPR had been maintained at 1.75% since July 7, 2020, when BNM cut the rate from 2% following the Covid-19 outbreak which began in early 2020.
BNM's decision to increase the OPR has taken economists by surprise, as many did not expect the key policy rate to be hiked up so soon, even though they had anticipated rate normalisation this year.