KUALA LUMPUR (Nov 8): Bank Negara Malaysia (BNM) announced today that the statutory reserve requirement (SRR) ratio will be lowered from 3.5% to 3% effective Nov 16, 2019, 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.

"The SRR is an instrument to manage liquidity and is not a signal on the stance of monetary policy. The overnight policy rate (OPR) is the sole indicator used to signal the stance of monetary policy, and is announced through the monetary policy statement released after the monetary policy committee meeting," BNM said.