KUALA LUMPUR, July 4– 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 1.97 per cent, while the one-, two- and three-week rates stood at 2.04 per cent, 2.08 per cent and 2.13 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, and reverse repo tenders.
The central bank also announced the availability of reverse repo, sale and buy back agreement, and Collateralised Commodity Murabahah transaction facilities.
The total liquidity surplus in the conventional system for the week fell to RM29.02 billion from RM33.4 billion last week, and in the Islamic system, it increased to RM24.60 billion from RM22.01 billion previously.