Dhaka, April 2 -- Money market gathers heat as the demand for cash in the liquidity-scant banking sector surges ahead of Eid festival, officials and bankers said.

To meet the growing demand for credits under the persisting contractionary monetary regime, many of the commercial banks having liquidity tightness have intensified their presence in key windows like interbank borrowing and liquidity supports from the Bangladesh Bank (BB), the country's central bank, according to them.

And the result is obvious: the call-money rate starts rising again while the volume of cash support by the BB to the credit-hungry banks keeps mounting and thereby heats up the money market.

According to data of the central bank, the call-money rate was 8.46 pe...