KUALA LUMPUR, Jan 6 — 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-, two- and three-week rates stood at 3.03 per cent, 3.07 per cent and 3.12 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 shortened trading week, the total liquidity surplus in the conventional system for the week just-ended declined to RM21.97 billion from RM34.1 billion last week, while in the Islamic system, it fell to RM12.6 billion from RM14.05 billion previously.

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

The market was closed on Monday for the New Year Holiday. — Bernama