KUALA LUMPUR, Dec 30 — Short-term rates are expected to remain stable next week with Bank Negara Malaysia (BNM) likely to intervene by offering tenders to absorb surplus liquidity from the system.

For the week just ended, the overnight rate was quoted at 2.97 per cent, while the one-week, two and three-week rates stood at 3.02 per cent, 3.06 per cent and 3.11 per cent respectively.

The central bank intervened on a daily basis to mop up excess liquidity by conducting conventional money market, Qard, reverse repo, range-maturity auction, and Commodity Murabahah Programme tenders.

In a short trading week, the total liquidity surplus in the conventional system for the week just ended expanded to RM34.1 billion from RM27.11 billion last week, while in the Islamic system, it improved to RM14.05 billion from RM8.3 billion.

The benchmark three-month Kuala Lumpur Interbank Offered Rates (KLIBOR) stood at 3.43 per cent.

The market was closed on Monday for the Christmas holiday. — Bernama