Call money ends steady at 6.25-6.75 pc

Mumbai, Jan 5 (UNI) Interbank call money today ended steady at 6.25-6.75 per cent compared to the previous close of 6.50-6.70 per cent yesterday.

The market could face a cash crunch next week which may hike the call money rates, dealers have predicted. Money market rates had shot to a nine-year high of 21 per cent last week.

Sharp fall in oil prices this week, if sustained further, could reduce inflationary pressures and lessen the need for the central bank to raise interest rates at the January 31 review, dealers said.

The central bank had raised its main short-term lending rate by 100 basis points in 2006, while the rate at which it absorbs surplus cash was raised by 75 basis points, traders added.

UNI