Short-term interbank rates set to remain stable next week 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 reverse repo tenders and Bank Negara Interbank Bills-Islamic (BNIBI) tender.

The liquidity surplus in the conventional system for the week reduced to RM28.83 billion from RM31.44 billion in the preceding week.

In the Islamic system, surplus liquidity decreased to RM18.51 billion from RM18.62 billion previously.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at 3.00 per cent as of May 16.  — BERNAMA / pic BLOOMBERG