Steady short-term rates seen next week
Short-term rates are expected to remain steady next week as Bank Negara Malaysia (BNM) continues to intervene in the financial system to absorb excess funds, a dealer said.
The overnight rate stood at 2.91 per cent, while the one-week, two-week and three-week rates stood at 2.97 per cent, 3.02 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 RM17.49 billion, while in the Islamic system it totalled RM2.31 billion.
The one-month, two-month and three-month interbank rates stood at 3.10 per cent, 3.18 per cent and 3.21 per cent, respectively.-- Bernama