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Malaysia-SME Bank cuts prime rate

SME Bank, a financial development institution offering financing facility and advisory services for SMEs, announced the reduction in the prime rate to 5.95% with immediate effect on 3rd February.

The move was in line with the lowering of the overnight policy rate to 2.5% by Bank Negara on Jan 21, the bank said in a statement.

Previously, the SME Bank’s prime rate was 6.5%. SME Bank managing director Datuk Azmi Abdullah said the reduction was part of the bank’s commitment to help small- and medium-scale enterprises tide over with the pressures of the economic turmoil.

The bank hoped lowering of the prime rate would help maintain the country’s economic growth, he said.