Short-term rates to remain stable on BNM's operations

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, and commodity murabahah programme tenders.

The total liquidity surplus in the conventional system for the week declined to RM37.1 billion from RM40.61 billion in the preceding week, while in the Islamic system, it rose to RM30.79 billion from RM26.70 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