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Call Money
Call rates ended around the usual eight per cent levels on Friday. Dealers said that the demand for funds was nominal amid comfortable liquidity conditions. The overnight interest rates opened at 8-8.10 per cent, little changed from Thursday's close of 7.95-8 per cent. "Inflows to the tune of Rs 3,000 crore on February 3 from redemption of two government securities aided the liquidity," a primary dealers said.The zero coupon 2000 bond of Rs 2,000 crore and the 12.60 per cent 2000 bond matured on Thursday. Call rates ended at 8-8.05 per cent. Dealers said the demand for funds to pay back refinance availed from the RBI capped the call rates around the 8 per cent levels. "A few players availed the refinance from RBI on Friday, which cooled off pressure on the call rates," a state-run bank dealer said. Banks and primary dealers avail of refinance from the central bank at the bank rate of 8 per cent.
FORECAST: Call rates seen steady on Monday. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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