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In January 2015, the Base Lending Rate (BLR) structure was replaced with a new Base Rate (BR) system. Under BR, which now serves as the main reference rate for new retail floating rate loans, banks in Malaysia can determine their interest rate based on a formula set by the central bank.
Current Base Lending Rate (BLR) Bank Negara Malaysia (BNM) has on 3 November 2022 decided to increase the Overnight Policy Rate (OPR) by 25 basis points to 2.75 percent. Historically, Standardised Base Rate (SBR), Base Rate (BR) and Base Lending Rate (BLR) has moved in tandem with the OPR.
Bank Negara Malaysia (the Central Bank of Malaysia), is a statutory body which started operations on 26 January 1959. Bank Negara Malaysia is governed by the Central Bank of Malaysia Act 2009. The role of Bank Negara Malaysia is to promote monetary and financial stability.
Applying for a home loan? Find out what BLR (Base Lending Rate) means and how it impacts your loan application.
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Coming back to the topic, the BLR was set by Bank Negara Malaysia (BNM) based on how much it costs to lend money to other financial institutions. It is basically the base interest rate that banks refer to internally before deciding how much interest rate they would charge for a consumer’s home loan.
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