KUALA LUMPUR: Short-term rates are likely to remain stable next week on Bank Negara Malaysia’s operations to absorb surplus liquidity from the cash market.
During the week just ended, the central bank intervened on a daily basis to reduce excess funds from the financial system by conducting 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 fell to RM38.31 billion from RM39.22 billion in the preceding week, while in the Islamic system, it eased to RM24.90 billion from RM26.12 billion, previously.
The average Islamic overnight rate remained unchanged at 1.72 per cent, while the one-, two- and three-week rates stood at 1.78 per cent, 1.82 per cent and 1.85 per cent, respectively. - Bernama