MONEY MARKET

SHORT-TERM rates are set to remain steady on Bank Negara Malaysia’s (BNM) operations to reduce surplus liquidity in the cash market.

For the week just ended, the overnight Islamic reference rate remained unchanged at 2.96 per cent, while the one-, two-, and three- week rates stayed at 3.03, 3.07 and 3.12 per cent, respectively.

Throughout the week, BNM intervened on a daily basis to absorb surplus funds from the financial system by conducting tenders, including conventional money market, Qard tenders, Islamic range maturity auction Qard tender, reverse repo tender, as well as Bank Negara Interbank Bills.

The total liquidity surplus in the conventional system for the week slightly decreased marginally to RM28.2 billion from RM28.6 billion last week, while in the Islamic system, it increased to RM17.2 billion from RM13.80 billion previously.