KUALA LUMPUR: Short-term interest rates are projected to hold steady today due to Bank Negara Malaysia’s liquidity management operations.
The central bank is absorbing excess funds from the financial system to maintain stability.
Liquidity levels stand at an estimated RM32.93 billion in the conventional market.
Islamic funds liquidity is estimated at RM21.15 billion.
BNM will issue three conventional reverse repo tenders today.
The tenders include RM3.4 billion for seven days, RM1.5 billion for 31 days, and RM1.0 billion for 92 days.
Two Islamic reverse repo tenders will also be issued.
The Islamic tenders comprise RM500 million for seven days and RM200 million for 92 days.
BNM also confirmed the availability of reverse repo, sell and buy-back agreement, and collateralised commodity murabahah facilities.
These facilities offer tenures of one week, one month, and three months.
A conventional overnight tender of up to RM38.8 billion will be conducted at 4 pm.
A murabahah overnight tender of up to RM21.9 billion will also take place at the same time.
These operations collectively support the stability of short-term interbank rates. – Bernama
