CASH RATE STEADY; BIDS AT RBI
REPO FALL
Date: 12/04/2012
Inter-bank call money rate was little changed on Wednesday as liquidity in the banking system showed signs of improvement, with banks borrowing less from the central bank's repo counter for a second straight day.
At 12:25 p.m. (0655 GMT), the one-day call rate was at 8.80/8.90 percent, a tad above the repo rate of 8.50 percent, compared with Tuesday's close of 8.75/8.80 percent.
Banks borrowed 842.05 billion rupees from the Reserve Bank of India's daily repo counter compared with 909.05 billion rupees in the previous session and Monday's 1.07 trillion rupees, an indication of the easing pressure on supply which traders said was most likely due to some government spending.
However, a few traders suggested that the reason for the fall could well be intentional low borrowing by banks before the central bank's rate decision next Tuesday.
"The fall in repo borrowings may be due to some banks thinking of meeting fund needs at lower rates next week in case the RBI cuts repo rate on April 17," said a trader with a state-run bank.
The majority of analysts polled by Reuters on Tuesday predict a first cut in the repo rate after three years by the RBI to lift sagging economic growth.
Volume in the call money market was 210.33 billion rupees, compared with 243.93 billion rupees on Tuesday, while the weighted average rate was 8.94 percent versus 8.97 percent previously.
Volume in the COLLATERALISED BORROWING AND LENDING OBLIGATION (CBLO) market dropped sharply to 252.77 billion rupees versus a total of 502.47 billion rupees on Tuesday, with the weighted average rate at 8.47 percent, lower than 8.35 percent previously.
In the inter-bank repo market, volume was 98.01 billion rupees with the weighted average rate at 8.34 percent.
At 12:25 p.m. (0655 GMT), the one-day call rate was at 8.80/8.90 percent, a tad above the repo rate of 8.50 percent, compared with Tuesday's close of 8.75/8.80 percent.
Banks borrowed 842.05 billion rupees from the Reserve Bank of India's daily repo counter compared with 909.05 billion rupees in the previous session and Monday's 1.07 trillion rupees, an indication of the easing pressure on supply which traders said was most likely due to some government spending.
However, a few traders suggested that the reason for the fall could well be intentional low borrowing by banks before the central bank's rate decision next Tuesday.
"The fall in repo borrowings may be due to some banks thinking of meeting fund needs at lower rates next week in case the RBI cuts repo rate on April 17," said a trader with a state-run bank.
The majority of analysts polled by Reuters on Tuesday predict a first cut in the repo rate after three years by the RBI to lift sagging economic growth.
Volume in the call money market was 210.33 billion rupees, compared with 243.93 billion rupees on Tuesday, while the weighted average rate was 8.94 percent versus 8.97 percent previously.
Volume in the COLLATERALISED BORROWING AND LENDING OBLIGATION (CBLO) market dropped sharply to 252.77 billion rupees versus a total of 502.47 billion rupees on Tuesday, with the weighted average rate at 8.47 percent, lower than 8.35 percent previously.
In the inter-bank repo market, volume was 98.01 billion rupees with the weighted average rate at 8.34 percent.
Powered by Commodity Insights
No comments:
Post a Comment