KUALA LUMPUR (July 9): Banks have begun lowering their benchmark lending and financing rates, following Bank Negara Malaysia's (BNM) decision on Wednesday (July 9) to reduce the overnight policy rate (OPR) by 25 basis points to 2.75% to support economic growth.
In separate statements on Wednesday evening, RHB Bank Bhd (KL:RHBBANK) and Bank Islam Malaysia Bhd (KL:BIMB) announced adjustments to their base rates, effective July 11 and July 10 respectively in line with BNM's monetary policy shift.
RHB Bank Bhd said it would reduce its standardised base rate (SBR) and base rate (BR) by 25 basis points, bringing them to 2.75% and 3.50% per annum respectively. Its base lending rate (BLR) and base financing rate (BFR) will also be lowered to 6.45% from 6.70%.
"This reduction reflects our continued support for BNM’s efforts to stimulate domestic demand through accommodative monetary policy," said RHB Banking Group managing director and group CEO Datuk Mohd Rashid Mohamad in a statement. "By easing borrowing costs, we are helping households and SMEs better manage their financial commitments while encouraging consumption and investment amid prevailing global uncertainties."
Meanwhile, Bank Islam will revise its SBR to 2.75%, BR to 3.52% and BFR to 6.47%, effective July 10.
Bank Islam group CEO Datuk Mohd Muazzam Mohamed said the adjustment is expected to bolster economic activity and provide financial relief to individuals and businesses with financing linked to the SBR, BR or BFR.
He added that the lower OPR enables the bank to expand its financing portfolios and reach underserved communities through its digital banking channels.
"As a purpose-driven and responsible bank, we view the OPR reduction as an opportunity to continue our role in enabling financial resilience, particularly for those most affected by the rising cost of living," Mohd Muazzam said. "Our role extends beyond offering affordable financing; we aim to contribute to a more inclusive and sustainable economic ecosystem for all."