Dhaka, Bangladesh (BBN)- The interest rate on 30-Day Bangladesh Bank Bills increased slightly Monday as commercial banks are not interested in buying the monetary instrument with a lower interest rate, treasury officials said.
The rate of weighted yield, generally known as interest rate, of the bills rose to 2.49 percent on the day from 2.46 percent of the previous auction, held on Dec. 7, according to auction results.
“We’ve accepted bids, which were offered higher interest, aiming to ease the pressure of excess liquidity in the country’s money market,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka, adding that it is a temporary measure totally. “When the market will turn around then the measure may be suspended,” he added.
On Aug. 10, the central bank reintroduced the auction of 30-Day Bangladesh Bank Bills aiming to mop up the excess liquidity from the market.
The BB accepted all four bids worth BDT 5.0 billion at the auction on the day for the short-term securities, resulting in withdrawal of the money from the market on the same day, the treasury officials added.
BBN/SS/SI/AD-15December09-1:20 am (BST)
