Short-term rates expected to be stable next week

KUALA LUMPUR, March 4 — Short-term rates are likely to be stable 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 remained unchanged at 2.95 per cent, while the one-week, two and three-week rates were at 3.02 per cent, 3.06 per cent and 3.11 per cent respectively.

The central bank intervened on a daily basis to mop up surplus liquidity by conducting tenders, including conventional money market, Islamic range maturity auctions, reverse repo tenders, and Qards.

The total liquidity surplus for the week just ended was higher at RM27.70 billion in conventional operations against RM34.24 billion last Friday.

Islamic funds declined to RM8.66 billion from RM11.90 billion.

The benchmark three-month interbank rate stood at 3.43 per cent. — Bernama