The interbank call money rate rose to 9% yesterday, ahead of Eid-ul Azha.
Some 25 banks traded money at the rate on the day. The rate reached the level after 20 months from 10.29% in January last year.
The interest rate in the call money market remained stable within 6% to 7% during last one year.
It was very unstable in the year 2012 and the rate went up to above 19% while the local market was crowded with huge credit demand.
The bank was in aggressive lending mode that year and, as a result, several credit scams took place. Then the Bangladesh Bank reined in the lending activities to jack up excess liquidity in the money market, contributing to tame down the call money market, said a senior executive of Bangladesh Bank.
The fluctuation of call money rate witnessed since last two weeks after a long break as business activities has started expanding, he said. The call money rate, however, rose rapidly though the transaction value falling, according to the central bank data.
The daily transaction came down to Tk7,400 crore yesterday which was above Tk8,000 crore in the last week at 8.25% rate, before rising to 8.5% from the first day of the current week.