Malaysia: Short-term rates likely to remain stable

KUALA LUMPUR: Short-term rates are likely to remain stable this week on Bank Negara’s operations to absorb surplus liquidity from the cash market.

During the week just ended, the central bank intervened on a daily basis to reduce excess funds from the financial system by conducting conventional money market tenders, reverse repo tenders, Qard tenders, Bank Negara interbank bills tender and commodity Murabahah programme tenders.

The total liquidity surplus in the conventional system for the week eased to RM37.90bil from RM38.31bil in the preceding week while in the Islamic system, it rose to RM25.8bil from RM24.9bil previously. — Bernama