KUALA LUMPUR, June 3 — Short-tenured interbank rates are expected to remain steady next week as Bank Negara Malaysia (BNM) continues to intervene in mopping up excess liquidity in the market.
A dealer said the central bank is expected to intervene with daily tenders and via conventional and Islamic instruments, to stabilise the local money market if needed.
“Usual tools to absorb excess funds from the system would include money market tenders, repo tenders, range-maturity auctions of both conventional and Islamic, and commodity Murabahah programme money market tenders,” the dealer added.
For the week just-ended, BNM intervened daily to flush the system of surplus funds.
The total liquidity surplus declined to RM25.32 billion against RM37.49 billion in conventional operations last Friday, while Islamic funds expanded to RM8.8 billion from RM4.7 billion.
On a week-to-week basis, the benchmark three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) stood at 3.43 per cent.
Meanwhile, the overnight Islamic reference rate stood at 2.96 per cent, while the one-week, two and three-week rates stood at 3.02 per cent, 3.06 per cent and 3.11 per cent respectively, throughout the week. — Bernama
