Cut-off rate for repo auctions

August 8: At the repo auction held yesterday, RBI jacked up the cut-off rate on the one-day and four-day repo by 4.25 per cent and 2.50 per cent respectively to 12.50 per cent and 14.50 per cent. The hike in repo rates comes on the back of governmentyesterday privately placing securities amounting to Rs 6,000 crore and maturing in the year 2015 at a coupon rate of 11.43 oer cent.

RBI today received 26 applications aggregating to Rs.3,645 crore under the one-day repo and accepted all the bids at a cut-off rate of 14 per cent (12.50 per cent yesterday). In the case of the three-day repo, it received 31 bids for 2,385 crore and accepted 29 of them worth Rs 2,325 crore at a cut-off rate of 15 per cent (11.50 per cent when the auction was last conducted on Aug 4).

The higher cut-off rates in the repo auctions had its impact on the inter-bank call money markets with the calls ending higher in the 13-13.5 per cent range as against the previous close of 11-11.5 per cent.