QUOTE(digilife @ Jan 1 2015, 12:22 PM)
To all sifus, what this stuff have effect on borrowings ?
Thanks
The lower the base rate of a bank is, it means the cost of doing business of the bank is lower after factoring other cost i.e admin cost, processing cost. In other words the Bank has enough deposit to fund its lending hence better liquidity. From now onward the lending rate for consumer loan will be BR+. Then you, as a consumer would know which Bank is charging you more in view that their base rate becoming more transparent.
From your chart Maybank has the lowest BR which means potentially the best rate in the market.
For example:
You intend to buy a house and ask for quotation.
Earlier both Maybank and CIMB were BLR - 2.45%, 6.85%-2.45% = 4.4% lending rate.
Now, under the BR,
Maybank is telling you the rate is BR+1.5% = 3.2+1.5 = 4.7%
CIMB is telling you the rate is BR+1.5% = 4%+1.5% = 5.5%
From here you will know all these while who is charging you more before the introduction of BR.

With BR, a better choice for consumer like you and me.
This post has been edited by JasonW13: Jan 1 2015, 12:42 PM