The central bank raised the key policy rate by 50 basis points to 10 percent yesterday, making borrowing costlier for the 11th consecutive time to tame inflation as spiralling prices remain a headache for the interim government.
In an effort to curb stubbornly high inflation, the central bank’s latest interest rate hike has sparked concerns among the business community as they argue that the increased cost of borrowing will strain their existing ventures and dampen future expansion plans.
This is the 11th time since May 2022 the BB hiked the repo rate to make money expensive for banks and tame demand to curb inflation.
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.
Interest rate will also be increased, says Bangladesh Bank governor
Bangladesh Bank Governor Ahsan H Mansur yesterday said it would be possible to lower the policy rates within about six months if inflationary pressure in the country is reduced to a tolerable level.
The Bangladesh Bank may increase the policy rate for both local and foreign currencies in a bid to reduce inflation and increase international reserves.
The International Monetary Fund (IMF) has suggested the central bank raise the policy rate by 50 basis points by December this year since its monetary tightening is yet to rein in inflation.
CPD Distinguished Fellow Mustafizur Rahman says
The central bank raised the key policy rate by 50 basis points to 10 percent yesterday, making borrowing costlier for the 11th consecutive time to tame inflation as spiralling prices remain a headache for the interim government.
In an effort to curb stubbornly high inflation, the central bank’s latest interest rate hike has sparked concerns among the business community as they argue that the increased cost of borrowing will strain their existing ventures and dampen future expansion plans.
This is the 11th time since May 2022 the BB hiked the repo rate to make money expensive for banks and tame demand to curb inflation.
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.
Interest rate will also be increased, says Bangladesh Bank governor
Bangladesh Bank Governor Ahsan H Mansur yesterday said it would be possible to lower the policy rates within about six months if inflationary pressure in the country is reduced to a tolerable level.
The Bangladesh Bank may increase the policy rate for both local and foreign currencies in a bid to reduce inflation and increase international reserves.
The International Monetary Fund (IMF) has suggested the central bank raise the policy rate by 50 basis points by December this year since its monetary tightening is yet to rein in inflation.
CPD Distinguished Fellow Mustafizur Rahman says
The exporters have already welcomed the central bank's move to devaluate the local currency, which they have long been waiting for.
