Bank Negara steps to stablise short-term rates

Short-term rates are expected to remain stable Monday as Bank Negara intervenes to absorb excess liquidity from the financial system, dealers said. The central bank estimated today's surplus at RM22.156 billion in the conventional system and RM5.664 billion in Islamic funds.

It will conduct four conventional tenders comprising RM1 billion each for seven days, 14 days, 21 days and 28 days, respectively.

The central bank will also conduct three Al-Wadiah tenders for RM1.5 billion for three days, RM900 million for seven days and RM700 million for 14 days.

It will conduct a RM400 million repurchase agreement (repo) tender for 31 days. At 4 pm, the central bank will carry out up to RM17.8 billion in conventional overnight tenders and a RM3 billion Al-Wadiah overnight tender.