Short-term rates are expected to remain stable today (Jan 6) on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the financial system.
Liquidity is estimated at RM40.57 billion in the conventional system and RM41.55 billion in Islamic funds.
Short-term interest rates are the rates at which short-term borrowings are effected between financial institutions or the rate at which short-term government paper is issued or traded in the market. Short-term interest rates are generally averages of daily rates, measured as a percentage.
Today, the central bank will conduct two conventional money market tenders, comprising an RM2 billion tender for seven days and an RM1 billion tender for 14 days, as well as three Qard tenders, namely an RM2.1 billion tender for seven days, an RM900 million tender for 14 days, and an RM100 million tender for 21 days.
BNM also conduct two reverse repo tenders, comprising an RM2 billion tender for 32 days and an RM145 million tender for 367 days.
It has also announced the availability of reverse repo, sale and buy-back agreements, and collateralised commodity Murabahah facilities for tenors of one to three months.
At 4pm, BNM will conduct up to RM38.7 billion conventional overnight tender and RM37.4 billion for Murabahah overnight tender.
