Short-term interbank rates to remain stable on BNM operations

KUALA LUMPUR: Short-term interbank rates are expected to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the financial system.

This week the central bank intervened daily to reduce excess funds from the financial system by conducting conventional money market, reverse repo, qard, and Bank Negara Interbank Bills (BNIB) tenders.

Total liquidity surplus in the conventional system for the week declined to RM37.81 billion from RM39.77 billion in the preceding week.

In the Islamic system, surplus liquidity decreased to RM29.09 billion from RM32.46 billion previously.

The Malaysia Islamic Overnight Rate (MYOR-i) stood at three per cent as of Jan 4. -Bernama