Dhaka, Bangladesh (BBN)- The inter-bank call money rate eased further on Tuesday following the central bank’s intervention in the market, officials said.
The call rate ranged between 30 percent and 35 percent on the day against 9-50 percent of the previous working day. However, most of the deals were settled at rate 35 per cent, treasury officials said.
The central bank first intervened in the market Monday that continued until Tuesday to bring back stability in the inter-bank call money rate, Bangladesh Bank (BB) officials said.
“Such intervention may continue until the market cool down,” a BB senior official said without elaborating.
The BB’s latest move came after the call money rate recorded an abnormal trend in the recent days following a reduced level of liquidity support from the central bank through repurchase agreement Repo auction.
The central bank started slashing liquidity support to the commercial banks since November 28 this year that continued until Tuesday for implementing its ongoing monetary policy, the BB officials said.
On Tuesday, the central bank received 24 bids of one-day tenure, amounting to BDT 113.1967 billion. But it provided BDT 39.2593 billion against the bids, according to the auction result.
BBN/SSR/AD-21Dec10-7:47 pm (BST)
