KUALA LUMPUR, Nov. 8 (Xinhua) -- Malaysian Central Bank announced Friday that the Statutory Reserve Requirement (SRR) Ratio will be lowered from 3.50 percent to 3.00 percent, to maintain sufficient liquidity in the domestic financial system.
Bank Negara Malaysia said in a statement that the change will be effective from Nov. 16 this year.
"The decision to reduce the SRR is undertaken to maintain sufficient liquidity in the domestic financial system," the central bank said.
"This will continue to support the efficient functioning of the domestic financial markets and facilitate effective liquidity management by the banking institutions," it added.
The central bank on Tuesday left its overnight policy rate unchanged at 3.00 percent.