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Bank Negara Malaysia reduced overnight policy rate (OPR) from 2.00% (in 2020) to 1.75% (in 2021) as it expects Malaysia's economic growth to improve although

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Bank Negara Malaysia reduced overnight policy rate (OPR) from 2.00% (in 2020) to 1.75% (in 2021) as it expects Malaysia's economic growth to improve although it is still subject to downside risks. (a) Based on the statement above, explain the type of policy implemented by Bank Negara Malaysia. (2 marks) (b) Describe how do the policy improves the economy by using the overnight policy rate (OPR) and money supply. (8 marks)

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