Bank Negara Malaysia  announced that the Statutory Reserve Requirement (SRR) Ratio will be increased from 3.0% to 4.0%, effective from 16 July 2011.

The decision to raise the SRR is undertaken as a measure to manage the significant build-up of liquidity, which may result in financial imbalances and create risks to financial stability.

The SRR is an instrument to manage liquidity and is not a signal on the stance of monetary policy.

OPR remains unchanged

At the Monetary Policy Committee (MPC) meeting on 7 July 2011, Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.0%.

Source: BNM Press Statement