Interbank Call Rates Drop to 4.85% Amid Softening Demand

India’s interbank call rates fell to 4.85% on Thursday due to decreased demand for short-term funds. Weighted Average Rate (WAR) in call money market at 5.30%.

Interbank call rates, the key short-term borrowing rates between banks, were observed trading lower at 4.85% on Thursday. This marks a decrease from 5.20% recorded on Wednesday, a movement primarily attributed to eased demand in the first week of the reporting cycle.

The weighted average rate (WAR) in the call money market stood at 5.30% on Thursday, reflecting a slight increase from 5.28% on Wednesday. During the day’s trading, overnight borrowing rates experienced fluctuations, touching a high of 5.40% and a low of 4.60%.

According to data released by CCIL, the weighted average rate in the Triparty Repo (TREP) market was 5.15% on Thursday. The total volume transacted in the TREP market reached a substantial Rs 490628.15 crore as of the latest reporting. Further details on the WAR in the Basket REPO market were pending.