Short-term rates likely to remain steady

Short-term rates on the money market are expected to remain steady next week as Bank Negara Malaysia is likely to offer
tenders to absorb excess funds from the system, dealers said.

They said the central bank's moves are expected to keep rates in check.

The overnight rate was 2.92 per cent while the one-week, two-week and three-week rates were 2.97 per cent, 3.02 per cent and 3.04 per cent respectively.

The central bank had actively intervened on a daily basis to mop up surplus liquidity by conducting conventional, Islamic and repo tenders.

It also made late borrowings to further reduce the excess funds.

The action reduced the system's total liquidity surplus for the week just ended to RM17.344 billion in conventional operations and RM3.076 billion in Islamic funds.