To
curb inflation, Bangladesh Bank has increased the existing policy interest rate
by 50 basis points from 9 percent to 9.50 percent. The central bank issued this
directive on Tuesday (September 24).
In
the directive, Bangladesh Bank stated that the policy interest rate for
overnight repo has been revised to 9.50 percent, up by 50 basis points from the
existing 9 percent, in line with the decision to continue the contractionary
measures pursued by the bank.
Additionally,
to enhance the efficiency of liquidity management by banks, the upper limit of
the policy interest rate corridor for the Standing Lending Facility (SLF) has
been increased by 50 basis points from the existing 10.50 percent to 11
percent. Similarly, the lower limit of the policy interest rate corridor for
the Standing Deposit Facility (SDF) has been raised by 50 basis points from
7.50 percent to 8 percent. This new decision will come into effect on Wednesday
(September 25).
Earlier,
on Monday (September 23), Governor of Bangladesh Bank Dr. Ahsan H. Mansur
hinted at a hike in the policy interest rate during an emergency press
conference held in the afternoon. This is the second increase in the policy
interest rate since his appointment as governor, with the previous hike raising
it from 8.5 percent to 9 percent.