Call rate slips down further to 1.25%

The overnight inter-bank call money rate fell to 1.25 per cent at the close of trading in the money market today, down from yesterday’s low of 4 per cent. The rate is being pushed close to its low of 1 per cent, touched earlier this month, by a flush of liquidity caused by redemption of bonds on Monday. “Towards the end of the day, there were players in the market to lend around Rs 1,500 crore, but there were no takers,” said a call money dealer with a public sector bank.