KUALA LUMPUR, May 26 — Short-term rates are expected to remain stable next week as Bank Negara Malaysia (BNM) is expected to offer tenders to absorb excess funds from the money market system, dealers said.

For the week just ended, the average overnight interest rate remained at 3.19 per cent, while the one-week, two- and three-week rates were pegged at 3.26 per cent, 3.30 per cent and 3.35 per cent, respectively.

Meanwhile, the benchmark three-month Kuala Lumpur Interbank Offered Rate was at last week’s 3.69 per cent.

During the week, the central bank intervened on a daily basis to mop up surplus liquidity by conducting tenders such as conventional, Islamic, commodity murabahah programme, range maturity auction and Islamic range maturity auction tenders.

It also carried out late borrowings to further reduce the excess funds.

On Friday-to-Friday basis, the total liquidity surplus in the conventional system for the week eased slightly to RM26.12 billion from RM26.18 billion last week, while in the Islamic system, it increased to RM14.52 billion from RM10.04 billion previously. — Bernama