BNM cuts statutory reserves ratio to 3 pct

KUALA LUMPUR: Bank Negara Malaysia will cut the Statutory Reserve Requirement (SRR) ratio to 3.00 percent from 3.50 percent effective Nov 16, 2019, to ensure sufficient liquidity in the domestic financial system.

The last time BNM reduced the SSR was in 2016, when the ratio was lowered to 3.50 percent from 4.00 percent.

“The decision to reduce the SRR is undertaken to maintain sufficient liquidity in the domestic financial system.

“This will continue to support the efficient functioning of the domestic financial markets and facilitate effective liquidity management by the banking institutions,” it said in a statement yesterday.

The central bank said the SRR is an instrument to manage liquidity and is not a signal on the stance of monetary policy. – Bernama