The Hindu Business Line : Call rates down at 2-2.5%

The interbank call rate fell to a low of 2 - 2.50 per cent on Thursday, as excess cash flooded the system. Call had closed at 3.25 - 3.50 per cent on Wednesday. "There was ample liquidity in the system as the RBI had conducted a Market Stabilisation Scheme auction for a relatively small amount of Rs 2,000 crore this week. We expect the central bank to announce another MSS auction worth Rs 5,000 - 6,000 crore which will drain out excess liquidity from the system," said a dealer with a private bank. Dealers expect call rates to edge up to 7.50 - 8 per cent levels by Monday as the outflow from the Rs 10,000-crore government securities auction will mop up some surplus cash. In the first one - day reverse repo auction, the RBI received 24 bids for Rs 23,020 crore while it accepted Rs 2,000 crore. In the second one - day reverse repo auction, it received 19 bids for Rs 11,475 crore while it accepted Rs 999 crore. There were no repo bids in the first and second one - day auctions.

The CBLO market saw 461 trades aggregating Rs 23,948 crore in the 0.10 - 2 per cent range.

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