Short-term rates likely to be steady next week

KUALA LUMPUR, Dec 3 — Short-term rates are likely to be steady next week with Bank Negara Malaysia (BNM) expected to offer tenders to absorb excess funds from the system.

For the week just-ended, the overnight rate was quoted at 2.95 per cent while the one-, two- and three-week rates moved between 3.01 per cent and 3.10 per cent.

The central bank intervened on a daily basis to mop up surplus liquidity by conducting conventional money market, reverse repo, repo, Qard and commodity murabahah programme tenders.

The total liquidity surplus for the week just-ended was lower at RM26.65 billion in conventional operations against RM28.59 billion last Friday despite late borrowings to further reduce the excess funds in the financial system.

Islamic funds eased to RM6.18 billion against last Friday’s RM7.13 billion.

The benchmark three-month interbank rate stood at 3.41 per cent. — Bernama