Call rate hits close to 3-year lows

By: |
Published: May 6, 2016 5:22:35 AM

The overnight call rate on Thursday fell to almost three year lows at 6.337%, Bloomberg data shows.

The overnight call rate on Thursday fell to almost three year lows at 6.337%, Bloomberg data shows. The call rate is the rate at which banks lend overnight money to each other. The last time the rate fell below this level was in July 2013 when it had hit 6.30%. Since the beginning of this fiscal, call rates have been on a downtrend. One of the reasons is the seasonal ease in liquidity after March. However, this time the central bank had brought in a lot of measures to ease the liquidity in the system along with a cut in the repo rate to 6.50%. As a result, call rates have been on a downtrend and more closer to the policy rate—something that the central bank prefers.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop