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 Islamic reverse repo tenders.

The surplus liquidity in the conventional system decreased to RM31.82 billion from RM35.50 billion at the end of the preceding week.

In the Islamic system, surplus liquidity rose to RM20.40 billion from RM18.12 billion previously.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at 3.00 per cent as of Oct 30.

The market was closed on Thursday (Oct 31) in conjunction with the Deepavali public holiday. — BERNAMA