Dhaka, Bangladesh (BBN) - The inter-bank call money rate hit 31 percent on Monday due mainly to squeezing of liquidity support by the Bangladesh Bank (BB).
The call rate ranged between 15 percent and 31 percent on the day against 17-29 percent 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 confirmed.
"The call money rate has increased slightly following the squeezing of liquidity support through repurchase agreement (Repo) auction by the central bank," a senior treasury official of a commercial bank said.
He 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.
On Monday, the central bank received five bids of one-day tenure, amounting to a total of BDT 14.1038 billion. But the BB provided BDT 3.5260 billion against the bids, according to the central bank auction result.
BBN/SI/AD-07Dec10-10:45 am (BST)