KUALA LUMPUR, Feb 4 — Short-term rates are likely to remain stable next week on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity in the financial system.
During the holiday-shortened week just ended, the central bank intervened on a daily basis to reduce excess funds from the financial system by conducting tenders, including conventional money market tenders, reverse repo tenders, Qard tenders and commodity Murabahah programme tenders.
The market was closed on Wednesday for Federal Territory Day.
The total liquidity surplus in the conventional system for the week narrowed to RM39.97 billion from RM47.60 billion in the preceding week.
Meanwhile, in the Islamic system, the surplus eased to RM30.91 billion from RM34.52 billion previously.
The Malaysia Islamic Overnight Rate (MYOR-i) stood at 2.72 per cent as of February 2, 2023.
— Bernama
