Saturday, November 1, 2008

Call Rates Increase To 13.5pc - Nov 1, 2008

The inter-bank call rates increased on Oct 29, as banks borrowed in the overnight market to meet their funds shortage. Call rates ended considerably higher at 13.5 per cent, as against Oct 27 close of 9.50-9.75 per cent. The Reserve Bank of India''s intervention in the forex market to stabilise the rupee is also drawing out liquidity in the system.

With the liquidity crunch in the markets, banks borrowed close to Rs 56,000 crore from the RBI under the liquidity adjustment facility on Oct 29. In the two-day repo auction under the first LAF, the RBI got and accepted 35 bids for Rs 27,125 crore. There were no reverse repo bids. In the two-day repo auction under the second LAF, the RBI received and accepted 33 bids for Rs 28,970 crore.

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