KUALA LUMPUR, Aug 15 — The Malaysian money market is expected to remain steady next week with more stabilised rates as Bank Negara Malaysia (BNM) is expected to continue to manage excess liquidity.
The liquidity would come mostly from money market maturities but BNM was expected to continue its intervention with daily tenders to mop up excess funds, said a dealer.
For the week just-ended, BNM intervened daily to flush the system of surplus funds by conducting conventional, Commodity Murabahah Programme, Qard, range-maturity auction and repo tenders.
Yesterday, the central bank's action helped reduce the market's total liquidity surplus to RM30.68 billion in the conventional system and RM5.43 billion in Islamic funds.
The overnight Islamic reference rate stood at 3.21 per cent while the one-, two- and three-week rates stood at 3.27 per cent, 3.32 per cent and 3.36 per cent, respectively.
Meanwhile, the benchmark three-month interbank rate stood at 3.69 per cent. — Bernama
