Bank Islam reduces base rate by 26bps

PETALING JAYA: Bank Islam Malaysia Bhd has lowered its base rate to 3.77% per annum, following the cut in the country’s benchmark overnight policy rate (OPR).

Effective today, the bank’s base rate will be reduced by 26 basis points (bps) from 4.03%, slightly higher than Bank Negara’s 25-bps cut in the OPR on April 7.

Meanwhile, Bank Islam’s base financing rate has been slashed to 6.72% per annum as compared with 6.98% earlier.

According to Bank Islam chief executive officer Muazzam Mohamed, the rate revision was due to the reduction in Bank Negara’s to 3%.

“The revision will be beneficial to our customers who have financing pegged to the base rate or the base financing rate, as the effective profit rate would be adjusted downwards accordingly which translates to a lower instalment amount.

“This is in line with the recent government aspiration to help improve the people’s cost of living, as well as boosting economic activities,” he said in a statement.

Source: TheStar