Short-term rates to remain stable next week

KUALA LUMPUR, July 21 — Short-term rates are likely to remain stable next week with Bank Negara Malaysia (BNM) expected to offer tenders to absorb excess funds from the money market system, dealers said.

For the week just ended, the average overnight interest rate remained at 3.19 per cent, while the one-week, two and three-week rates were pegged at 3.26 per cent, 3.30 per cent and 3.35 per cent respectively.

Meanwhile, the benchmark three-month Kuala Lumpur Interbank Offered Rate was at last week’s 3.69 per cent.

During the week, the central bank intervened on a daily basis to absorb excess liquidity by conducting tenders, including conventional money market, reverse repo and Qard tenders, and Bank Negara Interbank Bills.

On a Friday to Friday basis, the total liquidity surplus in the conventional system for the week was higher at RM23.51 billion from RM22.49 billion last week, while in the Islamic system, it rose to RM9.70 billion from RM8.80 billion previously. — Bernama