Why are short-term interbank rates expected to remain steady?

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Short-Term Interbank Rates Expected to Remain Steady Due to Central Bank Intervention

Short-term interbank rates are anticipated to remain steady today primarily due to the intervention measures undertaken by Bank Negara Malaysia (BNM) to absorb surplus liquidity within the financial system. These actions by the central bank are designed to manage the flow of funds and maintain stability in the overnight lending market.
Central Bank Liquidity Management Operations

BNM has estimated the available liquidity in the financial system for today at RM44.55 billion within the conventional system and an additional RM14.94 billion in Islamic funds. To manage this liquidity, the central bank has scheduled several operations. These include a conventional money market tender amounting to RM6 billion with a seven-day tenure and a reverse repo tender of RM200 million set for 120 days.
Additional Tender Facilities

Further measures to fine-tune liquidity include a Qard tender of RM3.5 billion, with maturities ranging from five to seven days. These tenders provide avenues for financial institutions to place surplus funds, thereby reducing excess liquidity in the market.
Evening Liquidity Absorption

As the day progresses, BNM will conduct further operations to manage liquidity. Specifically, at 4pm, the central bank will offer up to RM34 billion through a conventional overnight tender. Concurrently, an RM8 billion Qard facility will also be made available, ensuring that any remaining surplus liquidity is effectively absorbed before the end of the trading day.

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Why are short-term interbank rates expected to remain steady?

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