Bank Negara has decided to reduce overnight policy rate (OPR) by 25 basis points to 3.25% as a pre-emptive measure to provide a more accommodative monetary environment.
In a statement issued on Monday, it said the ceiling and floor rates of the corridor for the OPR were correspondingly reduced to 3.50% and 3% respectively.
Bank Negara said the decision was made at the monetary policy committee (MPC) meeting.
The central bank said given the heightened downside risks to growth and the diminishing inflationary pressures, the reduction in the OPR was a pre-emptive measure to provide a more accommodative monetary environment.
To further reduce the cost of intermediation, the MPC also decided to reduce the Statutory Reserve Requirement (SRR) from 4% to 3.5%, with effect from Dec 1, 2008.
“Going forward, the global economic and the international financial conditions are expected to continue to remain volatile and uncertain.
“Bank Negara Malaysia will monitor closely the evolving developments and will undertake the appropriate policy response to avoid a severe economic downturn,” it said.
For more details, go to www.bnm.gov.my
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