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Bank Negara Operations Set to Keep Malaysia’s Short-Term Rates Stable

Bank Negara tower at Jalan Dato Onn, Kuala Lumpur. KUALA LUMPUR JUNE 30 2021. Photo by Zahid Izzani

Kuala Lumpur, 28 July 2026 – Malaysia’s short-term interest rates are expected to remain stable as Bank Negara Malaysia moves to absorb excess liquidity from the conventional and Islamic financial systems through a series of money-market operations.

Liquidity in the banking system was estimated at RM48.72 billion in the conventional market and RM16.81 billion in the Islamic money market. The sizeable balances indicate that domestic financial institutions continue to hold sufficient short-term funds, giving the central bank room to manage liquidity without placing unnecessary pressure on interbank financing conditions.

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  • Bernard is a social activist dedicated to championing community empowerment, equality, and social justice. With a strong voice on issues affecting grassroots communities, he brings insightful perspectives shaped by on-the-ground advocacy and public engagement. As a columnist for The Ledger Asia, Bernard writes thought-provoking pieces that challenge norms, highlight untold stories, and inspire conversations aimed at building a more inclusive and equitable society.

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