The Bangladesh Bank will increase the policy rate twice and interest rate once by October to tame double-digit inflation, central bank Governor Ahsan H Mansur said at a press briefing yesterday.
The spread between interest rates on deposits and loans rose to 6.03 percent, the highest in two decades, indicating that banks are making money at the expense of depositors and borrowers.
The interest rates on consumer loans, forced loans and overdue loans are likely to go up rapidly in the upcoming months, however.
"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Fed said in a statement.
The US Federal Reserve is widely expected to hold interest rates at a 22-year high for a third consecutive meeting on Wednesday as it continues to fight elevated inflation.
One key factor hampering the effectiveness of BB's policies is the delay in decision-making and significant transmission lags.
As the final stretch of the year approaches, there's relief in markets that the sharpest global monetary tightening cycle in decades is finally nearing an end.
The leaders of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) have sought the cooperation of the central bank so that the interest rate on loans does not increase by a large margin.
The Federal Reserve is expected to leave interest rates unchanged on Wednesday for the first time since the U.S. central bank kicked off a historically aggressive round of monetary policy tightening in March of 2022.
The Bangladesh Bank will increase the policy rate twice and interest rate once by October to tame double-digit inflation, central bank Governor Ahsan H Mansur said at a press briefing yesterday.
The spread between interest rates on deposits and loans rose to 6.03 percent, the highest in two decades, indicating that banks are making money at the expense of depositors and borrowers.
The interest rates on consumer loans, forced loans and overdue loans are likely to go up rapidly in the upcoming months, however.
"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Fed said in a statement.
The US Federal Reserve is widely expected to hold interest rates at a 22-year high for a third consecutive meeting on Wednesday as it continues to fight elevated inflation.
One key factor hampering the effectiveness of BB's policies is the delay in decision-making and significant transmission lags.
As the final stretch of the year approaches, there's relief in markets that the sharpest global monetary tightening cycle in decades is finally nearing an end.
The leaders of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) have sought the cooperation of the central bank so that the interest rate on loans does not increase by a large margin.
The Federal Reserve is expected to leave interest rates unchanged on Wednesday for the first time since the U.S. central bank kicked off a historically aggressive round of monetary policy tightening in March of 2022.
Industrial and Commercial Bank of China Ltd (601398.SS), Agricultural Bank of China Ltd (601288.SS), Bank of China Ltd (601988.SS) and China Construction Bank Corp (601939.SS) all cut their rates from Thursday, websites from each bank showed.
