KUALA LUMPUR, Oct 31 — The Malaysian money market is expected to remain stable next week with more stabilised rates as Bank Negara Malaysia (BNM) is anticipated to continue to manage excess liquidity.
The central bank is expected to continue the intervention with daily tenders to mop up excess funds from the market, a dealer said.
For the week just-ended, BNM intervened daily to absorb 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 RM31.2 billion in the conventional system and RM9.46 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 3.28 per cent, 3.33 per cent and 3.37 per cent, respectively.
Meanwhile, the benchmark three-month interbank rate stood at 3.74 per cent. — Bernama
