The Hindu Business Line : Call closes at 0.1-0.3%

The inter-bank call rates closed at 0.1-0.3 per cent on Wednesday against the previous close of 0.1-0.2 per cent. The Reserve Bank of India received bids worth Rs 1,36,245 crore through the reverse repo window under the two sessions of Liquidity Adjustment Facility, while it accepted bids to the tune of Rs 2,999 crore. The central bank did not receive any bids through the repo window. Dealers expect call rates to stabilise between the signal rates of repo and reverse repo by next Monday. Market participants feel that the variable rates on repo and reverse repo would go a long way in stabilising the volatility in the market. Dr Rupa Rege Nitsure, Chief Economist, Bank of Baroda, said: “The current market situation is very dynamic, variable rates on repo and reverse repo is a function of emerging liquidity scenario. Variable rates would help control an abnormal situation in the market.” The CBLO market saw 188 trades aggregating Rs 16,448.65 crore in the 0.01-0.1 per cent range. —

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