Short-Term Rates To Remain Stable As BNM Takes Measures To Absorb Liquidity

Short-term rates are set to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity in the financial system.

During the week just ended, the central bank intervened daily to reduce excess funds from the financial system by conducting conventional money market tender, reverse repo tenders, Qard tenders as well as Bank Negara Interbank Bills Islamic tenders.

The total liquidity surplus in the conventional system for the week slid to RM45.12 billion from RM46.23 billion in the preceding week. In the Islamic system, the surplus liquidity grew to RM25.91 billion from RM24.20 billion previously.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at three per cent as of July 13.