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The inter-bank call money rate rose Tuesday in an active market as the market experienced pressure on liquidity due to withdrawal of cash through auctions of reverse repurchase agreement (repo) and treasury bills.
The rate was at its high at 22.50 against the previous day's rate at 18.00 per cent. The call rate evidently moved above the bank rate of 5.00 per cent.
The central bank conducted reverse repurchase agreement auction to withdraw Tk 7.08 billion Sunday at interest rates varying between 5.60 per cent and 6.00 per cent per annum.
Besides, the government borrowed a total of Tk 4.818 billion (481.80 crore) Sunday through the auctions of treasury bills
The call rate mainly varied between 10.00 per cent and 22.50 per cent against previous trading day's rates, which ranged between 9.00 per cent and 18.00 per cent.
Most of the deals were settled at rates between 10.00 per cent and 13.00 per cent, fund managers added.
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