KUALA LUMPUR (July 26): Public Bank Bhd announced yesterday that it will reduce its base rate (BR) and base lending rate (BLR) or base financing rate by 23 basis points (bps) from tomorrow onwards, following Bank Negara Malaysia’s (BNM) move to cut the overnight policy rate by 25 bps to 3%.

In a statement, Public Bank said the BR would be lowered to 3.52% while the BLR will be at 6.72%.

Public Bank founder and chairman Tan Sri Teh Hong Piow said the bank’s move to cut its BR and BLR is to pass on the benefits to customers, in line with the objective of the pre-emptive action by BNM.

“The move is poised to be a positive catalyst for the Malaysian economy to continue growing on a steady path amid increasing signs of moderating momentum in global economic growth,” he said.

“On a positive note, domestic demand as the main engine of the Malaysian economy will remain supported by monetary accommodativeness, healthy financial condition and stable inflation in the domestic economy,” he added.

Public Bank shares closed up eight sen or 0.41% at RM19.38, with a market capitalisation of RM74.8 billion.

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This article first appeared in The Edge Financial Daily, on July 26, 2016. Subscribe to The Edge Financial Daily here.