KUALA LUMPUR, Oct 18 – The local Malaysia money market is expected to be remain steady on next week with more stabilised rates as Bank Negara Malaysia (BNM) is expected to continue to manage excess liquidity. A dealer said the central bank is expected to continue the intervention with their daily tenders to mop up excess funds from the market.
BNM intervened daily to flush the system of surplus funds on the week just ended with also conducted conventional, Commodity Murabahah Programme, Qard, range-maturity auction and repo tenders. The central bank’s on Friday also taken action to helped reduce the market’s total liquidity surplus to RM29.77 billion in the conventional system and RM3.85 billion in Islamic funds.
In the meantime, the overnight Islamic reference rate stood at 3.21 per cent while the one-, two- and three-week rates stood at 3.28 per cent, 3.33 per cent and 3.37 per cent, respectively. Meanwhile, the benchmark three-month interbank rate stood at 3.74 per cent.
