MONEY MARKET

SHORT-TERM rates are expected to remain stable on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the cash market.

During the week, the average Islamic overnight interest rate remained pegged at 1.72 per cent, while the one-, two- and three-week rates stood at 1.78, 1.81, and 1.85 per cent, respectively.

For 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, Islamic range maturity auction (iRMA) Qard tenders, range maturity auction money market tenders, reverse repo tenders and Commodity Murabahah programme tenders.

BNM also announced the availability of reverse repo, sale and buy-back agreement, and collateralised commodity Murabahah facilities for tenors of one to three months during the week.