What is Base Rate (BR)?

Base Rate (BR) is the benchmark cost of fund of the bank in accordance to the new reference rate framework introduced by Bank Negara Malaysia and it replaces the Base Financing Rate (BFR) as the pricing for retail financing effective 2 January 2015. It is applicable to new retail financing with floating profit rates pegged to the bank's Base Rate (BR) except AITAB financing.

Under this new framework, KFH Malaysia's BR is computed based on its Retail marginal cost of funds plus the Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia, the marginal cost of funds is referring to deposit rate of Ringgit only deposit, excluding Gold account and Investment account.

What would trigger a change in the BR?

The BR will be adjusted when there are changes in marginal cost of funds due to monetary policy e.g. Overnight Policy Rate (OPR) and/or changes in the funding conditions e.g. movement in KLIBOR.