HLB and Hong Leong Islamic lower interest rate

KUALA LUMPUR: Hong Leong Bank (HLB) and Hong Leong Islamic Bank will be reducing its base rate (BR), Islamic base rate (IBR), base lending rate (BLR) and Islamic financing rate (IFR), effective tomorrow, in line with the Bank Negara’s move to cut the overnight policy rate by 25 basis points (bps) to 1.75%.

It would be reducing the BR and IBR to 2.63% from 2.88% while the BLR and IFR would be lowered to 5.64% from 5.89%.

“Similarly, the board rates of its fixed deposits will be revised lower by 25 bps as well,” it said. Group managing director and chief executive officer Domenic Fuda said the journey to recovery and rebuilding resiliency in the business and household sectors would take some time despite the easing of restrictions and businesses as well as social activities moving back towards pre-movement Control Order (MCO) period.

“Cash flow remains a serious concern especially for certain sections of the business community and households which are continuing to deal with a heavy blow to their finances amidst the weaker economy, job losses and employment prospects,” he said.

HLB is encouraged by the reasonable recovery in business activities since the recovery MCO, among its corporate and SME clients.

“The recovery is not even and there are some businesses and households that continue to experience cash flow issues and this further reduction in interest rates will provide additional stimulus to accelerate the pace of the economic recovery in the second half of 2020,” he said.