The Malaysian money market is expected to remain stable next week on Bank Negara Malaysia's (BNM) intervention to manage surplus liquidity.

The central bank is expected to continue the intervention with daily tenders to mop up excess funds from the market.

For the holiday-shortened week, BNM intervened daily to absorb excess funds by conducting conventional money market, Commodity Murabahah Programme, Qard and repo tenders.

The local market was closed on Thursday and Friday for the Maulidur Rasul and Christmas holidays respectively.

On Wednesday, the central bank's action helped reduce the market's total liquidity surplus to RM38.48 billion in the conventional system and RM8.98 billion in Islamic funds.

The overnight Islamic reference rate stood at 3.21 percent, while the one-, two- and three-week rates were pegged at 3.30 percent, 3.35 percent and 3.39 percent, respectively.

Meanwhile, the benchmark three-month interbank rate stood at 3.84 percent.

- Bernama