Dhaka, Bangladesh (BBN)- The inter-bank call money rate came down to 16 per cent on Thursday from 18 per cent of the previous day following injection of fresh fund by the central bank to keep market stable.
The call rate ranged between 8.0 per cent and 16 per cent on the day against 8.00 per cent and 18.00 per cent of the previous day. However, most of the deals were settled between 12.00 per cent and 14 .00 per cent, treasury officials said.
The central bank injected fund amounting to Tk 16.00 billion at 8.75 per cent interest on the day through repurchase agreement (Repo) auction in the market.
"We've strengthened our monitoring to keep stable the country's inter-bank money market ahead of the Eid festival," a senior official of the Bangladesh Bank (BB), the country's central bank, told BBN in Dhaka.
He also said the central bank will use its tools like Repo auction in line with the market requirement that would help pull down the call money rate.
The overnight borrowing normally shoots up before Eid festivals when demand for cash from retail clients rises considerably.
Excess liquidity with all scheduled banks stood lower at BDT 129.88 billion by the end June last against BDT 142.79 billion at the end of June 2007, according to the central bank statistics.
BBN/SI/SS/AD-18September08-5:19 PM