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Foreign banks in Malaysia raise their cost of borrowing

OCBC, UOB and, from Friday, HSBC, in Malaysia raise their base rates and consequently, their effective lending rates

Foreign-exchange strategist Suresh Ramanathan says people would rather put their money in a foreign currency that keeps its value - at a lower interest rate - than to keep their savings in ringgit.

Kuala Lumpur

BORROWING costs are set to rise in Malaysia, with a number of banks having raised their base rates (BR), partly as a result of a liquidity crunch brought about by a shortage of ringgit and US dollars, analysts say.

As of last week, foreign banks including OCBC Bank (