KUALA LUMPUR – Short-term rates are expected to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the cash market.
During the week, the average Islamic overnight interest rate remained at 1.73%, while the one-, two- and three-week rates stood at 1.78%, 1.81% and 1.86%, respectively.
For the week just ended, BNM intervened on a daily basis to reduce excess funds from the financial system by conducting conventional money market tenders, Qard tenders, as well as a reverse repo tender.
The total liquidity surplus in the conventional system for the week eased to RM36.18 billion from RM38.91 billion last week. However, in the Islamic system, it fell slightly to RM21.25 from RM21.33 billion previously.
The market was closed on Monday for the Federal Territory Day. – Bernama, February 6, 2021
