KUALA LUMPUR, Jan 25 — Short-term rates are expected to remain steady next week as Bank Negara Malaysia continues to intervene in the money market to absorb excess funds from the system.
A dealer said the central bank's move is expected to keep rates in check.
For the week just ended, the overnight rate stood at 2.93 per cent, while the one-week, two-week and three-week rates stood at 2.98 per cent, 3.02 per cent and 3.05 per cent respectively.
During the week, the central bank actively intervened on a daily basis to mop up surplus liquidity by conducting conventional, range maturity auction, Al-Wadiah, Commodity Murabahah programme and repo tenders.
It also made late borrowings to further reduce the excess funds.
The action reduced the system's total liquidity surplus to RM13.962 billion in conventional operations and RM792.10 million in Islamic funds. — Bernama
