Banks to cut key rates effective March 2

BOTH CIMB and RHB banking groups will revise their annual base lending rate (BLR) and base financing rate (BFR) from 5.95 per cent to 5.55 per cent effective March 2.

Asian Finance Bank will also reduce its BFR the same day, but to 5.50 per cent, the lowest rate so far in the country.

Public Bank Bhd and Public Islamic Bank Bhd are to follow suit with a rate cut to 5.55 per cent the next day.

This is in line with the recent downward revision of Bank Negara Malaysia's overnight policy rate to 2 per cent.

In a statement issued yesterday, CIMB Group also said its CIMB Bank and CIMB Islamic mortgage customers will have the opportunity to reduce their monthly instalments for their existing mortgages with the bank.

Monthly instalments for all mortgage borrowers of CIMB Islamic will be reduced automatically, while those with conventional mortgages can request for a reduced monthly instalment by calling CIMB Bank. This is due to the difference between Islamic and conventional loan documentation.