Bank Islam cuts lending base rates

By NG MIN SHEN / Pic By MUHD AMIN NAHARUL

Bank Islam Malaysia Bhd (BIMB) has lowered its base rate (BR) by 26 basis points (bps) to 3.77% per annum from 4.03% previously, while its base financing rate is reduced to 6.72% per annum from 6.98%, with effect from today.

The revision is post Bank Negara Malaysia’s (BNM) decision to slash the Overnight Policy Rate (OPR) by 25bps to 3% on Tuesday.

“The revision will be beneficial to our customers who have financing pegged to the BR or base financing rate, as the effective profit rate will be adjusted downwards accordingly which translates to a lower instalment amount,” BIMB CEO Mohd Muazzam Mohamed (picture) said in a statement.

Post the OPR announcement, Malayan Banking Bhd (Maybank) first announced a reduction in its base lending rate (BLR) and BR by 20bps effective yesterday.

Maybank lowered its BR to 3.05% per annum from 3.25%, while its BLR will stand at 6.7% per annum versus 6.9% previously.