Cash rates steady, RBI review eyed
MUMBAI: Indian cash rates were steady on Tuesday as cash supply in the banking system was adequate to meet demand for funds.
At 11:15 a.m., the one-day interbank cash rate was at 6.70/75 percent against 6.65/70 percent on Monday.
"Demand was strong in early trades as most banks tried to cover needs before the policy review is released, as any hike in key policy rates would mean increase in borrowing costs," said a dealer with a large state-run bank.
Most analysts expect the central bank to avoid a tough monetary stance and limit a rate increase to 25 basis points, to ensure economic growth is not squeezed by its fight to rein in inflation.
Volumes in the inter-bank cash market were at 63.63 billion rupees against a total of 74.10 billion rupees on Monday, Clearing Corp of India data showed.
In the collateralised borrowing and lending obligation (CBLO) market, volume was at 168.55 billion rupees against a total of 447.25 billion rupees on Monday.
The weighted average rate in the call money market was at 6.76 percent, up 11 basis points from the previous close, while in the CBLO market it was at 6.30 percent, up 5 basis points.
At 11:15 a.m., the one-day interbank cash rate was at 6.70/75 percent against 6.65/70 percent on Monday.
"Demand was strong in early trades as most banks tried to cover needs before the policy review is released, as any hike in key policy rates would mean increase in borrowing costs," said a dealer with a large state-run bank.
Most analysts expect the central bank to avoid a tough monetary stance and limit a rate increase to 25 basis points, to ensure economic growth is not squeezed by its fight to rein in inflation.
Volumes in the inter-bank cash market were at 63.63 billion rupees against a total of 74.10 billion rupees on Monday, Clearing Corp of India data showed.
In the collateralised borrowing and lending obligation (CBLO) market, volume was at 168.55 billion rupees against a total of 447.25 billion rupees on Monday.
The weighted average rate in the call money market was at 6.76 percent, up 11 basis points from the previous close, while in the CBLO market it was at 6.30 percent, up 5 basis points.
Comments