CIMB, OCBC, & RHB Reduces Their Base Rates & Base Lending Rates
Responding to the move of Bank Negara’s reduction of the OPR to 3%, CIMB, OCBC, and RHB are reducing their own base rates and base lending rates (BLR) by as low as 0.25%. This move will see lower loan interest rates and, unfortunately, lower fixed deposit rates as well.
CIMB will be reducing both their base rate and fixed deposit rates by 25 basis points. This translates to a reduction of 0.25% for their base lending rate (BLR) and base financing rate (BFR). CIMB Group CEO, Tengku Datuk Seri Zafrul Aziz, stated that the reduction will ease the burden of borrowers. The new rates go into effect on 15 May 2019.
Both OCBC and OCBC Al-Amin Bank will see a reduction of their base rate, base lending rate, and base financing rate by 0.25% too. This brings down the base rate from 4.08% to 3.83% and the base lending rate and base financing rate from 7.01% to 6.76%.
Their fixed deposit and Islamic time deposit rates will also be decreased by 0.25% – a move that is unfortunate, but in-line with Bank Negara’s overnight policy rate (OPR) cut. The new rates came into effect on 13 May 2019.
RHB’s base rate and base lending rate will be decreased by 20 basis points. This brings about a drop of its base rate from 4% to 3.8%, and its base lending rate from 6.95% to 6.75% for RHB Bank, RHB Islamic Bank, and RHB Investment Bank. RHB’s fixed deposit rates will also be reduced by 20 basis points.
The new rates started on 13 May 2019.
What does this mean for the people?
The response of banks reducing their base rates and base lending rates following Bank Negara’s OPR cut (read more here) brings about slightly more affordability for the people. Especially so for those who are borrowing money.
As per the reductions mentioned above, this brings about loan interest rates that are slightly lower than they were before (reduction of up to 0.25%). The caveat that comes with it, unfortunately, is the reduction in fixed deposit rates as well – meaning you will get a slightly lower return in your savings.
You can read more about the overnight policy rate and what it is in more detail here: 2019 OPR Cuts: What Does This Mean For Malaysians?