Call rates trade flat at 6.7-6.9 per cent, bonds subdued

Mumbai, Oct 31 (UNI) Call rates today traded flat between 6.8 and 6.9 per cent as liquidity position declined.

Briefing about the RBIs economic policy, RBIs chief economic advisor Ashok Lahiri said the policy aims at liquidity not putting pressure on prices and to maintain economic growth and ensure price stability.

RBI in the call money market yesterday transacted Rs 20,755.27 crore at the weighted average of 6.83 per cent.

In the first liquidity adjustment RBI today transacted Rs 50 crore through one bid at the rate of six per cent, whereas, in the second liquidity RBI transacted Rs 3,720 crore through seven bids at six per cent.

However, RBI did not inject any money through the repo auction.

RBI in its credit policy review hiked the repo rate by 25 bps to 7.25 per cent. This is supposed to check the rising rate of inflation, which touched the 5.25 per cent for the last week.

Gilts today turned volatile after tha announcement of hike in the interst rate by 25 basis points and closed subdued. The (GS 8.07 per cent 2017) bond traded at Rs 102.78 and gave a yield of 7.67 per cent.

RBI fixed the reference rate for the day at Rs 45.02 per USD compared to Rs 45.09 per USD yesterday.

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