Short-term rates to remain stable next week

KUALA LUMPUR • Short-term rates are expected to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the cash market.

During the week just ended, the central bank intervened on a daily basis to reduce excess funds from the financial system by conducting conventional money market tenders, Qard tenders, commodity Murabahah programme tenders, reverse repo tenders and Bank Negara Interbank Bills (BNIB).

The total liquidity surplus in the conventional system for the week stood at RM41.60 billion compared with RM42.21 billion in the preceding week, and in the Islamic system, it rose to RM24.29 billion from RM23.88 billion previously.

The average Islamic overnight rate remained unchanged at 1.72 per cent, while the one-, two- and three-week rates stood at 1.78 per cent, 1.82 per cent and 1.85 per cent, respectively. — Bernama / pic TMR