Short-Term Rates To Remain Stable Next Week

KUALA LUMPUR, May 25 (Bernama) -- Short-term rates are expected to remain stable next week as Bank Negara Malaysia continues to intervene to reduce excess funds from the financial system.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=951956
Published: May 26, 2013

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20130525104011/Article/index_html
Published: May 26, 2013

On Thursday, the overnight rate stood at 2.92 per cent, while the one-week, two-week and three-week rates were pegged at 2.98 per cent, 3.01 per cent and 3.04 per cent, respectively.

The central bank called for several money market tenders comprising conventional, Islamic, Commodity Murabahah Programme, Al-Wadiah, range maturity auctions and repos on a daily basis to mop up the liquidity surplus from the market.

The market was closed on Friday for the Wesak Day holiday.

For the week just-ended, the central bank entered the money market daily to flush out funds.

The closing liquidity surplus in the conventional operations amounted to RM15.039 billion, while the excess in the Islamic system stood at RM4.312 billion.

As of Thursday, the underlying three-month KLIBOR remained unchanged at 3.21 per cent.

-- BERNAMA