The decision to increase the Overnight Policy Rate (OPR) by 25 basis points on July 6 yesterday also prompted major local banks to increase their rates.
Malayan Banking Bhd (Maybank) and RHB Banking Group announced that they will raise the base rate (BR) and base lending rate (BLR) by 25 basis points.
According to a statement from Maybank, starting July 8, BR will be revised at 2.25% from 2% while BLR will be increased to 5.9% per annum from 5.65%.
In addition, Maybank and Maybank Islamic fixed deposit rates were also reset to increase starting July 8.
On behalf of RHB, the bank's BR and BLR will increase by 25 basis points effective July 13.
It was clarified that RHB Bank Bhd, RHB Islamic Bank Bhd and RHB Investment Bank Bhd will increase BR by 3% from 2.75% while BLR will be 5.95% from 5.70% and its fixed deposit rate will also be revised.
Generally, changes to the OPR greatly affect rates at each bank.
Rising global inflationary pressures have forced central banks around the world to act to raise rates despite the risk of a major recession to the economy.
In Malaysia, BNM has acted to raise rates twice in a row this year from 1.57% to the latest at 2.25%.
