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NewsBank Negara raises Statutory Reserve Requirement to 4%
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Bank Negara raises Statutory Reserve Requirement to 4%
by hlk Thu 07 Jul 2011, 18:55
KUALA LUMPUR: Bank Negara Malaysia has raised the Statutory Reserve Requirement (SRR) Ratio from 3% to 4%, effective from July 16, 2011.
In a statement Thursday, July 7, the central bank said the decision to raise the SRR was 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.
“The Overnight Policy Rate (OPR) is the sole indicator used to signal the stance of monetary policy that is announced through the Monetary Policy Statement released after each Monetary Policy Committee meeting,” it said.
In a statement Thursday, July 7, the central bank said the decision to raise the SRR was 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.
“The Overnight Policy Rate (OPR) is the sole indicator used to signal the stance of monetary policy that is announced through the Monetary Policy Statement released after each Monetary Policy Committee meeting,” it said.
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