SHORT TERM RATES TO REMAIN STABLE NEXT WEEK

KUALA LUMPUR, Nov 7 (Bernama) -- Short-term rates are to remain stable on the money market next week, as Bank Negara Malaysia (BNM) is expected to continue to intervene to stabilise the system, dealers said.

They said the market is expected to be flush with funds and the central bank would conduct tenders to stabilise the system.

For the week just ended, the overnight, one-week, two-week and three-week rates moved between 1.92 per cent and 2.01 per cent.

Bank Negara had intervened on a daily basis to mop up excess funds from the liquidity system, conducting conventional and Al-Wadiah tenders.

It also called for late tenders to further reduce the surplus and offered repo tenders on a daily basis.

The total liquidity surplus for conventional operations ended the week at RM22.55 billion and RM8.02 billion for Islamic funds.

On Friday the underlying three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) was unchanged at 2.16 per cent. -- BERNAMA

MAZ AS