Lending rate cap relaxed for consumer loans

Bangladesh Bank yesterday relaxed the lending rate cap for consumer loans, allowing banks to hike it up to 3 percentage points from the current level.

This means banks can charge up to 12 per cent in interest rates on consumer loans from 9 per cent now, according to the new monetary policy of the central bank.

Similarly, the BB has withdrawn the floor on the deposit rate.

Since April 2020, the BB has maintained a 9 per cent cap on all loans, except for credit card loans.