This article first appeared in The Edge Financial Daily on May 14, 2019

KUALA LUMPUR: RHB Banking Group said it revised its base rate (BR) and base lending rate (BLR) by 20 basis points effective yesterday, following the overnight policy rate (OPR) cut by Bank Negara Malaysia (BNM).

In a statement yesterday, the bank said RHB Bank Bhd, RHB Islamic Bank Bhd and RHB Investment Bank Bhd had reduced their BR from 4% to 3.8% and the BLR to 6.75% from 6.95% per annum.

“In line with the revision, RHB Bank’s fixed deposit rates were also revised downwards by 20 basis points effective yesterday,” it said.

Last week, BNM lowered its key interest rate to 3%, after keeping the OPR at 3.25% for more than a year. The central bank said the domestic financial markets have remained resilient, despite periods of volatility primarily due to global developments.

However, while domestic monetary and financial conditions remain supportive of economic growth, there are some signs of tightening of financial conditions, said BNM. The OPR adjustment, it said, is intended to preserve the degree of monetary accommodativeness.