The central bank today raised the repo rate by 50 basis points to beef up its fight against the persisting higher inflation.

After the increase, the new rate will be 7.75 percent and it will become effective from tomorrow.

The monetary policy committee of the Bangladesh Bank decided to raise the policy rate at a meeting at the central bank headquarters in the capital. 

The repo rate is the rate at which the BB lends money to commercial banks or financial institutions.

Amid criticisms over the delay in squeezing the money supply, the central bank has started to make borrowing costlier by increasing the policy rate.

Today's increase is the eighth hike in the past 18 months as consumer prices have remained at an elevated level.

Average inflation rose 9.93 percent in October, way above the central bank's target of 6 percent for the current fiscal year.