Short-term rates likely to remain intact
Short-term rates are expected to remain intact next week as Bank Negara Malaysia (BNM) continues to intervene in the market to siphon off excess funds from the interbank system, a dealer said.
The overnight rate stood at 2.93 per cent while the one-, two- and three-week rates stood at 2.97 per cent, 3.01 per cent and 3.04 per cent respectively on Friday.
BNM is expected to call for money market tenders in the conventional, Islamic and repo systems on a daily basis based on the amount of liquidity surplus in the market.
For the week just ended, the central bank entered the money market daily with various instruments as the system was flushed with funds from the market and repo maturities.
The closing liquidity surplus in the conventional system amounted to RM15.084 billion while in the Islamic system it totalled RM2.925 billion.
The one-, two- and three-month interbank rates stood at 3.10 per cent, 3.17 per cent and 3.20 per cent respectively.-- Bernama