Title: The impact of monetary policy expectations on interbank interest rates in Malaysia
Abstract: This paper focuses on the monetary policy expectations and transmission role of the yield curve in Malaysia. Bank Negara Malaysia can control interbank interest rates in one- to nine-month maturities through the monetary policy expectations formed in the financial market because the overnight indexed swap (OIS) rate and interbank interest rates are in a one-to-one relationship in these maturities. On the other hand, the impact of monetary policy expectations on the interbank interest rate of one-year maturity is not a one-to-one but 1.390. This may be because certain noises, such as credit risks, are incorporated into the interbank interest rate of one-year maturity.