More Banks Cut Interest Rates

KUALA LUMPUR, Nov 26 (Bernama) -- Public Bank Bhd and Public Islamic Bank Bhd will reduce the Base Lending Rate (BLR) and Base Financing Rate (BFR) by 25 basis points from 6.75 percent to 6.5 percent with effect from Dec 1.
This follows Bank Negara's downward revision of the Overnight Policy Rate (OPR) by 25 basis points on Monday.
"With the reduction of the BLR/BFR, the full benefit of the reduction in interest rates by Bank Negara Malaysia is passed on to our customers. It supports Bank Negara's objective of promoting domestic economic activities by lowering the cost of financing for consumers and businesses," said Public bank chairman Tan Sri Dr. Teh Hong Piow.
He said the revision in the BLR/BFR will have a marginal impact on the net interest income of the Public Bank Group, after taking into account the benefits enjoyed from the reduction in the Statutory Reserve Ratio from 4.0 percent to 3.5 percent by Bank Negara.
Separately, Asian Finance Bank Bhd also announced that it would reduce its BFR by 25 basis points to 6.5 percent effective Dec 1.

tunku : this is one of the best option right now, to reduce the interest rate.i think they should lower it to 5.75% especially with a slumping housing market, steep decline in manufacturing and increased unemployment.