Inter-bank call money rate hits 31pc
Tuesday, 7 December 2010
FE Report
The inter-bank call money rate hit 31 per cent Monday due mainly to squeezing of liquidity support by the central bank, officials said.
The call rate ranged between 15 per cent and 31 per cent on the day against 17-29 per cent of the previous working day. However, most of the deals were settled at rates varying between 20 per cent and 27 per cent, the treasury officials said.
"The call money rate has increased slightly following the squeezing of liquidity support through repurchase agreement (Repo) auction by the Bangladesh Bank (BB)," a senior treasury official of a leading private commercial bank (PCB) told the FE.
On Monday, the BB received five bids of one-day tenure, amounting to a total of Tk 14.1038 billion. But the central bank provided Tk 3.5260 billion against the bids, according to the central bank auction result.
The treasury official also said the upward trend of call money may continue in the near future in line with the BB's indications.
On Wednesday last, the central bank raised the cash reserve requirement (CRR) by 0.5 percent to 6.0 per cent for the commercial banks to curb inflationary pressure on the economy.
The new CRR will be effective from December 15, a central bank announcement said earlier.
The inter-bank call money rate hit 31 per cent Monday due mainly to squeezing of liquidity support by the central bank, officials said.
The call rate ranged between 15 per cent and 31 per cent on the day against 17-29 per cent of the previous working day. However, most of the deals were settled at rates varying between 20 per cent and 27 per cent, the treasury officials said.
"The call money rate has increased slightly following the squeezing of liquidity support through repurchase agreement (Repo) auction by the Bangladesh Bank (BB)," a senior treasury official of a leading private commercial bank (PCB) told the FE.
On Monday, the BB received five bids of one-day tenure, amounting to a total of Tk 14.1038 billion. But the central bank provided Tk 3.5260 billion against the bids, according to the central bank auction result.
The treasury official also said the upward trend of call money may continue in the near future in line with the BB's indications.
On Wednesday last, the central bank raised the cash reserve requirement (CRR) by 0.5 percent to 6.0 per cent for the commercial banks to curb inflationary pressure on the economy.
The new CRR will be effective from December 15, a central bank announcement said earlier.