MALAYSIAN MONETARY POLICY AS AT 24th NOVEMBER 2008

I welcome the move by Malaysian Central Bank i.e. Bank Negara Malaysia to reduce interest rates. Bank Negara Malaysia decided to reduce the Overnight Policy Rate by 25 basis points to 3.25% from the current 3.5% - Hence the ceiling rate now is 3.5% and floor rate is 3% respectively.Even at this current rate I still envisage a downward trend in interest rates.

Effective 1st December 2008, the Statutory Reserve Requirement (SRR) for banks will be reduced from 4% to 3.5% - Obviously Malaysian Banks would have more cash thus would be able to provide more opportunities for businesses and the Malaysian public.