BLR is fixed at a ceiling level by BNM, currently 6.75%, yes correct. But the fixed rate can be changed from time to time by BNM depended on economy situation. Just for the last 2-3 years, economy is not moving in either direction, so the BLR is being left at 6.75% for this period of time but it doesn't mean future BLR will be the same especially current economy condition and inflation situation will have big impact on the macro-economy side.

So BLR is not fixed but fixed at a ceiling by BNM    and can be reviewed from time to time, normally when BNM hold meeting, (about a month plus for every meeting interval), only when there is emergency situation, then BNM will act accordingly which is same across various countries central bank or Fed Reserves.

I hope my explainatin is clear enough.

The high supply of money has caused FD rate stay at historical low. Why? because since 1998 crisis, domestic demand has slumped and not recover well, while export is good because of cheaper RM, so trade surplus is building every year, every month, so money become plenty.
But with less investment opportunites around (businesses expansion, investment like stock market), those cash is just sitting in the banks doing not many things. You can esee those well managed company, mostly are high in cash level, which also a lot of well managed listed company give windfall special dividend from time to time because those cash has not much opportunites being used.

Gov spending is not reduced, don't be misled by this few days newspapers headline, those reduction is just tiny portion to make newspaper headlines, insignificant. 
In fact, if gov spending is really reduced and slightly thrifty (like don't buy a Rm200 screw drive set) then gov won't have budget deficit of more than 3% of total GDP.

Also, although Malaysia ecoonomy is highly depended on gov (as 1 millions + workforce is in gov servant), still gov spending is not the entire picture, private sector is the one main driving force of the economy.

Another point is that reduction in gov spending has no direct relationship with money supply.

Actually we have negative interest rate at the moment as inflation rate > FD interest rate.