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

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.