Call money closes high at 12.00/12.50 per cent

Mumbai, Dec 27 (UNI) Inter-bank rates today continued their upward journey as they tightened further, ending the day at 12.00-12.50 per cent, after having touched a 14 per cent level in intra-day trading, a leading broker said.

Gross mismatch between the very high demand seen and the limited supply ensured that the pressure on the call rates did not cease.

In the second consecutive trading session, the 1st reverse repo auction of the day witnessed no bids giving further proof of the severity of the cash crunch.

At the LAF window, the RBI received just two bids worth Rs 25 crore at the one-day reverse repo auction, where 64 bids totalling upto Rs 27,795 crore were accepted.

The CBLO segement saw 319 bids worth Rs 13,399 crore being traded in the range of 7.24-9.50 per cent.

With few signs of either the systematic liquidity improving or the demand levels subsiding in the near future, call rates are expected to trade firm, dealers added.

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