CIMB reduces rates by 25bps

By NST Business - January 22, 2020 @ 7:17pm

KUALA LUMPUR: CIMB Bank Bhd and CIMB Islamic Bank Bhd have reduced their base rate and fixed deposit/fixed return income account-i board rates by 25 basis points in response to Bank Negara cut in overnight policy rate (OPR), effective January 30, 2020.

CIMB said similarly, loans and financing based on base lending rate (BLR) and base financing rate (BFR) respectively will be reduced by 0.25 per cent.

The banking group said the 0.25 per cent reduction across the board is to help achieve the corresponding effect of monetary policy transmission intent by Bank Negara's Monetary Policy Committee.

CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz said the OPR cut is timely in view of benign inflation and other modest key economic indicators.

“The Malaysian economy’s steady growth is expected to be supported by this latest move by Bank Negara to set the nation’s economic expansion on a firmer trajectory, moving forward.

“Current macro-economic challenges, in particular the ongoing US-China trade negotiations, look set to remain a threat to the growth of emerging economies, including Malaysia’s.

“We hope the 0.25 per cent reduction in applicable rates will not only ease the burden of borrowers, but also spur further lending, investments and consumption to support the country’s economic growth,” he said.