KUALA LUMPUR (Nikkei Markets) -- Malaysia's central bank Friday unexpectedly announced half a percentage point cut in its so-called statutory reserve requirement ratio to boost flows in the financial system just days after it held the key policy rate steady at this year's final monetary policy review.
The ratio -- the proportion of deposits that banks have to set aside as cash - will be lowered to 3.00% effective from Nov. 16, Bank Negara Malaysia said in a statement. BNM last adjusted the cash reserve in Feb. 2016 when the rate was reduced by 50 basis points from 4.00%.
