Call money closes down at 6.20-6.50 pc

Mumbai, Feb 23 (UNI) Interbank call money today ended lower at 6.20-6.50 per cent, compared to 6.40-6.80 per cent on the previous day, dealers said.

The rates mellowed on sound cash supply in the market.

Finance Minister Palaniappan Chidambaram said on Thursday that he expected inflation to moderate in the coming days, helped by easing of supply shortages.

The government and the Central Bank have recently taken a slew of measures to increase supply of food and basic commodities and curb demand-driven inflation.

The Central Bank announced an increase in banks' reserve requirements this month, following a similar move in December and increased its lending rate on January 31 to rein in inflation.

The first stage of the cash reserve ratio increase kicked in on February 17, while the next takes effect on March three, it will drain a total of Rs 14,000 crore, brokers added.

UNI