KUALA LUMPUR (July 11): Bank Negara Malaysia's Monetary Policy Committee cut the overnight policy rate (OPR) by 25 basis points to 2.75% on Wednesday, July 9. Subsequently, several banks in the country have announced their new lending rates, effective as early as Thursday, in line with the revised OPR.

The Edge will be updating this report, as more banks announce their new rates.

Hong Leong Bank Bhd (KL:HLBANK) and Hong Leong Islamic Bank have announced reductions in their lending rates.

Effective July 14, the banks’ standardised base rate (SBR) will be lowered to 2.75%, while the base rate (BR) and Islamic base rate will be revised to 3.63% from 3.88%.

“In today’s evolving economic climate, monetary policy adjustments are essential for maintaining stability and fostering sustainable growth. At Hong Leong Bank, we see this rate revision as a strategic alignment to secure the vitality of economic activity and strengthen the nation’s growth trajectory,” said Hong Leong Bank group managing director and chief executive officer Kevin Lam in a statement on Friday.

RHB Bank Bhd (KL:RHBBANK) said it would reduce its SBR and BR by 25 basis points, bringing them to 2.75% and 3.50% per annum respectively, effective Friday. Its base lending rate (BLR) and base financing rate (BFR) will also be lowered to 6.45% from 6.70%.

RHB Banking Group managing director and group CEO Datuk Mohd Rashid Mohamad in a statement on Wednesday said, "By easing borrowing costs, we are helping households and small and medium enterprises better manage their financial commitments while encouraging consumption and investment amid prevailing global uncertainties."

Bank Islam Malaysia Bhd (KL:BIMB) has revised its SBR to 2.75%, BR to 3.52% and BFR to 6.47%, effective Thursday.

Bank Islam group CEO Datuk Mohd Muazzam Mohamed said in a statement on Wednesday 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.

Malayan Banking Bhd (KL:MAYBANK) has announced a reduction in its BR to 2.75% from 3%, effective Friday. Concurrently, the bank’s BLR and Islamic base financing rate will be lowered to 6.40% from 6.65%.

“In line with the revision, Maybank and Maybank Islamic’s fixed deposit rates will also be adjusted downwards by 25 basis points, effective the same day,” it said.

Public Bank Bhd (KL:PBBANK) said it will reduce its SBR, BR, and BLR/BFR by 0.25%, effective Friday.

The bank’s SBR will be 2.75% in tandem with the OPR, while its BR will be reduced to 3.27% from 3.52%, and its BLR/BFR will be reduced to 6.47% from 6.72%.

At the same time, Public Bank’s fixed deposit rates will also be adjusted downwards, effective on the same date.

Effective July 14, CIMB Bank Bhd and CIMB Islamic Bank Bhd will reduce their SBR and fixed deposit/fixed return income account-i board rates by 25 basis points.

Similarly, all financing facilities based on the BLR and BFR will be reduced by 0.25%.

Affin Bank Bhd (KL:AFFIN), meanwhile, has announced a reduction in its statutory base rate to 2.75% from 3%, its BR to 3.70% from 3.95%, as well as its BLR/BFR to 6.56% from 6.81%.

“In line with the revision, Affin Bank’s fixed deposit and Affin Islamic’s Term Deposit-i board rates will also be adjusted downwards, effective July 11, 2025,” it said.

AmBank will lower its SBR to 2.75% from 3% effective July 14. The base lending or financing rate will drop to 6.45% from 6.7%, while the BR will be adjusted to 3.6% from 3.85%.

For illustration purposes, the effective interest or profit rate for a 30-year loan or financing of RM350,000 with no lock-in period is 4% per year, based on the SBR plus 1.25%, the bank said.

Alliance Bank Malaysia Bhd (KL:ABMB) and Alliance Islamic Bank Bhd will revise their SBR to 2.75% from 3%, effective July 15. The BR will be reduced to 3.57% from 3.82%, while the BLR and BFR will be lowered to 6.42% from 6.67%.

Under this framework, the standardised base rate will be used as the common reference rate for all financial institutions for their new retail floating-rate loans/ financing and will be linked solely to the OPR, said the bank. The banks will also adjust their fixed deposit rates downwards on the same effective date.

MBSB Bank Bhd said it will reduce its BR, BFR and term deposit rates by 25 basis points effective July 17.

BR will be reduced from 3.90% to 3.65%, while its BFR will be reduced to 6.5% from 6.75%.

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Bank Negara Malaysia cuts overnight policy rate to 2.75%