(Kuala Lumpur, Malaysia) Following Bank Negara’s announcement of a 25 basis point increase in the overnight policy rate to 3%, domestic banks in Malaysia have also revealed their plans to raise loan and deposit rates.
In response to Bank Negara’s decision, Maybank, one of the country’s largest banks, announced that it will be increasing its standard base rate (SBR), base rate (BR), and base lending rate (BLR) by 25 basis points starting from Monday, 8th May.
Maybank stated in a release that the standard base rate and base rate will be raised from 2.75% to 3%, while the base lending rate will see an increase from 6.4% to 6.65%. The Islamic base rate and base funding rate of the bank will also experience a 25 basis point hike, reaching 3% and 6.65% respectively.
Simultaneously, Maybank and Maybank Islamic will raise their fixed deposit rates on the same day.
This adjustment marks the first change in Maybank’s base rate since November 7, 2022, when it was raised from 2.5% to 2.75%.
Joining the wave of rate increases, Affin Bank, Affin Islamic Bank, and Affin Investment Bank will also be implementing a 25 basis point increase in their loan and financing rates starting Monday. Correspondingly, Affin Bank and Affin Islamic Bank will adjust their fixed deposit rates accordingly.
The decision by these banks to raise loan and deposit rates aligns with Bank Negara’s move to tighten monetary policy. The interest rate hike aims to manage inflationary pressures and ensure economic stability in the face of changing global economic conditions.
As Malaysian banks adjust their rates, borrowers and depositors should be prepared for the impact on their loan repayments and savings. It is advisable for individuals and businesses to review their financial arrangements and consult with their respective banks to understand the implications of the rate adjustments.
These changes reflect the efforts of Malaysian banks to maintain financial equilibrium in a dynamic economic environment and provide a stable foundation for the country’s financial sector.