KUALA LUMPUR, Sept 26 — Short-term interbank rates are expected to remain stable next week as Bank Negara Malaysia (BNM) is expected to intervene to stabilise the local money market.

The central bank is expected to continue the intervention with daily tenders to mop up excess funds in the market, said a dealer.

For the week just ended, BNM intervened daily to flush the system of surplus funds by conducting conventional, Qard, repo, range maturity auction and commodity murabahah programme tenders.

Yesterday, the central bank’s action helped reduce the market’s total liquidity surplus to RM28.93 billion in the conventional system and RM6.86 billion in Islamic funds.

The Overnight Policy Rate (OPR) remained at 3.25 per cent, while the overnight Islamic reference rate stood at 3.21 per cent and the one-, two- and three-week rates stood at 3.28 per cent, 3.32 per cent and 3.36 per cent respectively.

Meanwhile, the benchmark three-month interbank rate stood at 3.74 per cent. — Bernama