The inter-bank call money rate rose to 12 percent on Thursday due to liquidity shortage in different banks.
The Bangladesh Bank injected Tk 2,068 core in the money market under a repurchase agreement (Repo) on Thursday.
BB also provided Tk. 6470.72 crore as liquidity support facility to the primary dealers.
The call money rate or the interest rate which a bank charges on other banks for lending money for a short period, ranged between 10 percent and 12 percent on the previous day, although the call money rate eased in the last four months after an abnormal rise in December last year.
Bankers said the liquidity pressure was created as Bangladesh Bank (BB) did not provide the required amount of liquidity support to the commercial banks.
BB data shows the weighted average rate of call money was 8.16 percent on 16 May and 6.69 percent on 28 April.
A senior official of a private bank said, 'The call money rate has increased slightly due to inadequate liquidity support through repurchase agreement auction by the central bank.'
A BB official said that the Repo auction will continue in line with the existing monetary policy and the upward trend of call money rate may continue next week.
The Repo rate is the interest rate at which the central bank lends money to commercial banks.
The central bank had earlier selected 15 PDs — 12 banks and three non-banking financial institutions (NBFIs) — to handle government securities in the secondary market.
The inter-bank call money rate recorded an unprecedented rise at 190 percent on 19th December last year due to the enforcement of the new cash reserve requirement (CRR) rules for the commercial banks to contain inflation.
Earlier, the call money rate increased up to 150 percent in 2006.
Source: New Age
Posts
0 comments:
Post a Comment