BNM rate cut: No big impact on margins seen
But analysts caution that further easing would hit banks' margins, earnings
Kuala Lumpur
COMPARED to the previous steep cuts to the key lending rate of 150 basis points over a six-month period during the global financial crisis of 2008-09, the 25 basis points (bps) reduction announced on Wednesday is not expected to have a sizeable impact on the net interest margins (NIM) of banks.
Analysts expect the impact of the 0.25 per cent cut to have a slight effect but caution that additional easing would further compress margins and dampen earnings.
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