Short term rates likely to remain stable next week

Short-term rates are expected to remain stable next week with Bank Negara Malaysia (BNM) likely to continue to intervene in the money market to keep excess liquidity in check, dealers said.

They said the central bank intervened regularly during the week, mopping up surplus liquidity from the system to keep rates steady.

It conducted several money market tenders on a daily basis including conventional, Al-Wadiah, repo and a range maturity auction in the week.

Following the borrowings, liquidity surplus in the conventional operations stood at RM15.76 billion while the surplus in the Islamic system was at RM4.02 billion.

On Friday, the central bank conducted four tenders, comprising a range maturity auction, two Al-Wadiah and one repo.

It also issued a late conventional tender for RM15.7 billion and an Al-Wadiah tender for RM2.5 billion on that day, both for three days.

The overnight rate stood at 2.94 per cent, while the one-, two- and three-week rates were pegged at 3.00 per cent, 3.02 per cent and 3.04 per cent respectively.