KUALA LUMPUR: Short-term rates are projected 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, Qard tenders, reverse repo tenders, commodity Murabahah programme tenders, and Bank Negara Interbank Bills tender.
The total liquidity surplus in the conventional system for the week decreased to RM36.20 billion from RM50.19 billion in the preceding week, and in the Islamic system, it eased to RM30.10 billion from RM32.10 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