Image credit:

KUCHING: Standard Chartered Malaysia and Standard Chartered Saadiq are bringing down their base rate to 2.27 per cent and base lending/financing rate to 5.45 per cent following the latest reduction of the overnight policy rate (OPR).

In a statement, it said the downward revision of 25 basis points will take effect on July 14 and also applies to the fixed deposits interest and term deposits-i profit rates across all tenors.

Meanwhile, Public Bank Bhd and Public Islamic Bank will also reduce their base rate and base lending/financing rate by 0.25 per cent effective July 10.

Public Bank’s fixed deposit rates will also be correspondingly adjusted by 0.25 per cent, on the same date.

“Bank Negara Malaysia’s Monetary Policy Committee recently cut the OPR for the fourth time this year, by 25 basis points to 1.75 per cent.

“The move is expected to provide additional policy stimulus to accelerate the recovery of an economy that has been halted by the Covid-19 pandemic,” said Tan Sri Tay Ah Lek, Public Bank managing director/chief executive officer in a statement.

Meanwhile, Hong Leong Bank (HLB) and Hong Leong Islamic Bank is also reducing its base rate (BR), Islamic base rate (IBR), base lending rate (BLR) and Islamic financing rate (IFR), effective July 10.

The bank said it would be reducing the BR and IBR to 2.63 per cent from 2.88 per cent while the BLR and IFR would be lowered to 5.64 per cent from 5.89 per cent.

“Similarly, the board rates of its fixed deposits will be revised lower by 25 bps as well,” it said in a statement.

Group managing director and chief executive officer Domenic Fuda said the journey to recovery and rebuilding resiliency in the business and household sectors would take some time despite the easing of restrictions and businesses as well as social activities moving back towards pre-Movement Control Order (MCO) period.

“Cash flow remains a serious concern especially for certain sections of the business community and households which are continuing to deal with a heavy blow to their finances amidst the weaker economy, job losses and employment prospects,” he said.

Nevertheless, he said HLB is encouraged by the reasonable recovery it is seeing in business activities since the Recovery MCO, both within its corporate and SME clients.

“However, the recovery is not even and there are some businesses and households that continue to experience cash flow issues and this further reduction in interest rates will provide additional stimulus to accelerate the pace of the economic recovery in the second half of 2020,” he said.