KUALA LUMPUR: Short-term rates are expected to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity in the cash market.
For the week just ended, the overnight Islamic reference rate remained unchanged at 2.72%, while the one-, two- and three-week rates stayed at 2.79%, 2.83% and 2.88%, respectively.
Throughout the week, BNM intervened on a daily basis to reduce excess funds from the financial system by conducting tenders, including money market tenders, Qard tenders and reverse repo tender.
The central bank also conducted Bank Negara Interbank Bills Islamic and Islamic range maturity auction.
The total liquidity surplus in the conventional system for the week declined to RM16.74 from RM22.20 bil last Friday, while in the Islamic system, it rose to RM12.0 bil from RM10.60 bil previously. – Feb 15, 2020, Bernama.