By Gigian Chin
Short-term rates are set to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the cash market.
For the week just ended, the Islamic overnight interest rate stood at 1.73 per cent, while the one-, two- and three-week rates stood at 1.78 per cent, 1.83 per cent and 1.87 per cent, respectively.
Throughout the week, BNM intervened on a daily basis to reduce excess funds from the financial system by conducting various tenders, namely conventional money market tenders, Islamic range maturity auction money market tenders, Qard tenders, repo tenders, reverse repo tenders and Commodity Murabahah programme tender.
The total liquidity surplus in the conventional system for the week fell to RM21.99 billion from RM24.58 billion last week, while in the Islamic system, it increased to RM16.99 billion from RM16.34 billion previously.
