Bank Islam reduces rates by 25 basis points

Bank Islam reduces rates by 25 basis points

KUALA LUMPUR: Bank Islam Malaysia Bhd will revise its Base Rate (BR) and Base Financing Rate (BFR) following Bank Negara Malaysia´s (BNM) decision to reduce the Overnight Policy Rates (OPR) by 25 basis points to 2.75% from three per cent.

Chief executive officer, Mohd Muazzam Mohamed said, the new rate which will be effective Jan 28, 2020, will see the BR reduced by 25 basis points from 3.77% to 3.52% per annum while the BFR from 6.72% to 6.47% per annum.

“The reduction will alleviate consumers´ financial burden and further spur investments and domestic consumption as the effective profit rate will be adjusted downwards accordingly.

“Apart from that, the cut will translate to a lower instalment amount subsequently boosting the economy, ” said Muazzam in a statement.

The last revision in Bank Islam´s BR was on May 10, 2019, when it was revised from 4.03% to 3.77% and BFR from 6.98% to 6.72%.

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