Steady short-term rates seen next week

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

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

The overnight rate stood at 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, range maturity auction, Al-Wadiah, Islamic range maturity auction 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 RM15.25 billion in conventional operations and RM2.78 billion in Islamic funds