Short-term rates likely to start steady
Short-term rates are expected to remain steady next week as Bank Negara Malaysia (BNM) is expected to continue to intervene in the market to siphon off excess funds from the interbank system,
A dealer said BNM would call for several money market tenders in the conventional, Islamic and repo systems on a daily basis in line with the amount of liquidity surplus.
For the week just-ended, the central bank entered the money market throughout the week as the system was flushed with funds from money market and repo maturities.
The closing liquidity surplus in the conventional system amounted to RM17.5 billion, while in the Islamic system it totalled RM1.2 billion.
The overnight rate was 2.92 per cent while the one-, two- and three-week rates were 2.98 per cent, 3.02 per cent and 3.04 per cent respectively.-- Bernama