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, both conventional and Islamic.

The surplus liquidity in the conventional system narrowed to RM26.22 billion from RM30.67 billion in the preceding week.

In the Islamic system, the surplus liquidity was slightly lower at RM22.45 billion compared to RM22.49 billion previously.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at 3.00 per cent as of Aug 8. — BERNAMA