KUALA LUMPUR, May 8 — Bank Negara Malaysia (BNM) will lower the Statutory Reserve Requirement (SRR) ratio by 100 basis points, from two per cent to one per cent, effective May 16, 2025.
It said the decision to reduce the SRR is part of BNM’s continuous efforts to ensure sufficient liquidity in the domestic financial system.
“This will facilitate banks to better manage liquidity in an environment of greater financial market volatility and provide continued support for financial intermediation activity.
“The SRR reduction will release RM19 billion worth of liquidity into the banking system,” BNM said in a statement today.
The SRR is an instrument to manage liquidity and is not a signal regarding the monetary policy stance.
It added that 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.
— Bernama
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