Bank Negara Malaysia Cuts Overnight Policy Rate for the Fourth Time in 2020

On the 7th of July 2020, Bank Negara Malaysia (BNM) lowered the overnight policy rate (OPR) by a further 25 basis points (bps) to 1.75%, making this the fourth rate cut for 2020.

In line with this most major banks across Malaysia were reported to have immediately adjusted their base rates and base lending rates on the same day, with Malayan Banking Bhd (Maybank), RHB Banking Group and CIMB Bank, amongst the first three to announce the cuts.

BNM’s rate cuts for 2020 have totalled 125 bps to date with the most recent rate cut being the largest, according to a local media report. The current OPR also marks a record low since the floor was set back in 2014.

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