The Hindu Business Line : Call rates close higher

The inter-bank call rates closed higher at 8-8.25 per cent on Monday against the previous close of 6-6.10 per cent, as there was some tightness in liquidity following the hike in cash reserve ratio. On an intra-day basis, call rates also touched a high of 9.50-9.75 per cent. The CRR hike came into effect on November 10 and has sucked out Rs 16,000 crore from the system leading to temporary tightness in the system. Dealers, however, feel that the cash crunch is temporary and call rates would come back to the 6 per cent range soon.

In the first one-day reverse repo auction under the Liquidity Adjustment Facility, the Reserve Bank of India received and accepted one bid for Rs five crore. In the first one-day repo auction, the RBI received and accepted 14 bids for Rs 9,100 crore. The CBLO market saw 512 trades aggregating Rs 28,546.40 crore in the 6.90-9.70 per cent range. - Our Bureau

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