The inter-bank call-money rate slightly declined to 10.02% on Wednesday from 10.03% the previous day following a 50-basis-point cut in the daily cash reserve requirement (CRR). The rate had been 10.05% a week prior. While the call rate remained between 9.75% and 11.00%, most deals settled at 10.00%-10.50%. The central bank lowered the daily CRR to 3.0% from 3.5%, though the bi-weekly average remains at 4.0%. Consequently, inter-bank call money transactions nearly doubled, rising to Tk 54.21 billion from Tk 27.77 billion a day earlier. Banks now have around Tk 80 billion in additional daily funds, providing flexibility amid liquidity pressures. However, market analysts suggest this move may not significantly impact overall stability, with potential mid- and end-month pressure persisting. The central bank last revised CRR rules in April 2020 to mitigate COVID-19’s economic impact.
Source for more details:
