KUALA LUMPUR: Short-term interest rates are likely to remain stable next week as Bank Negara Malaysia (BNM) continues its intervention to mop up excess liquidity.
A dealer said the central bank is expected to continue to call for money market tenders on a daily basis. For the week just-ended, BNM intervened daily by conducting conventional, Qard, range maturity auction and Commodity Murabahah programme tenders to reduce excess liquidity in the system.
The overnight rate for the week stood at 3.21 per cent, while the one-week, two and three-week rates stood at 3.27 per cent, 3.32 per cent and 3.35 per cent, respectively.
On Friday, the central bank conducted a late conventional money market tender for RM23.50 billion and a RM5.50 billion Qard tender, both for three-day money.
Total surplus in the conventional system this week was decreased to RM23.49 billion while RM5.49 billion remained in Islamic funds.
The underlying three-month interbank rate stood at 3.69 per cent. --BERNAMA