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 overnight Islamic reference rate stood at 1.97%, while the one-, two- and three-week rates finished at 2.04%, 2.09% and 2.13%, 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 tenders, and reverse repo tenders.
The total liquidity surplus in the conventional system for the week increased to RM31.0 bil from last week’s RM29.19 bil, while in the Islamic system, it rose to RM26.58 bil from RM19.59 bil. – May 30, 2020, Bernama
