Short-term interbank rates to remain stable on BNM’s operations

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

This week, the central bank intervened daily to reduce excess funds from the financial system by conducting conventional money market, reverse repo, Qard and Bank Negara Interbank Bills Islamic tenders.

The liquidity surplus in the conventional system for the week rose to RM33.84 billion from RM25.65 billion in the preceding week.

In the Islamic system, surplus liquidity decreased to RM23.04 billion from RM23.75 billion previously.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at 3.00 per cent as of Feb 22. — BERNAMA / pic TMR