Short-term rates set to remain stable on BNM’s operations next week

SHORT-term rates are expected to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity in the financial system.

During the week just ended, the central bank intervened on a daily basis to reduce excess funds from the financial system by conducting tenders comprising of conventional money market tenders, reverse repo tenders, Qard tenders, and commodity Murabahah programme tenders.

The total liquidity surplus in the conventional system for the week was marginally higher at RM47.60 billion compared to RM47.11 billion in the preceding week.

Meanwhile, in the Islamic system, the surplus narrowed to RM21.14 billion from RM22.13 billion previously.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at 2.72 per cent as of March 16, 2023. — Bernama / pic TMR