KUALA LUMPUR, Feb 7 — Short-term rates are expected to remain steady next week on Bank Negara Malaysia’s (BNM) intervention in the money market to absorb excess funds.

The central bank is anticipated to intervene on a daily basis to mop up excess funds from the system.

For the week just ended, BNM intervened on a daily basis, conducting conventional, Al-Wadiah, repo, Islamic range maturity auction and Commodity Murabahah Programme tenders. 

The overnight rate for the week stood at 3.21 per cent while the one-week, two-week and three-week rates were pegged at 3.28 per cent, 3.32 per cent and 3.36 per cent, respectively.

The underlying three-month Kuala Lumpur Interbank Offered Rate was fixed at 3.85 per cent.

On Friday, the total liquidity surplus in the conventional system was reduced to RM21.69 billion from an earlier estimate of RM34.42 billion while in the Islamic system, the liquidity surplus was reduced to RM7.96 billion from an earlier forecast of RM14.66 billion.

Following this, the central bank issued a late conventional tender for RM21.70 billion and a late Al-Wadiah tender for RM7.5 billion, both for three-day money. — Bernama