KUALA LUMPUR, May 23 -- Short-term rates are set to remain stable next week on Bank Negara Malaysia's (BNM) operations to absorb surplus liquidity from the cash market.

For the week just ended, the overnight Islamic reference rate stood at 1.97 per cent, while the one-, two- and three-week rates finished at 2.04 per cent, 2.09 per cent and 2.13 per cent, respectively.

Throughout the week, BNM intervened on a daily basis to reduce excess funds from the financial system by conducting various tenders, namely conventional money market tenders, Qard tenders, range maturity auction Qard tenders, and reverse repo tenders.

The total liquidity surplus in the conventional system for the week decreased to RM29.19 billion from last week’s RM40.30 billion, while in the Islamic system, it rose to RM19.59 billion from RM18.13 billion. 

The market will be closed until Tuesday in conjunction with Hari Raya Aidilfitri. 

-- BERNAMA