The central bank announced the decision in a notice on Monday as fears of the coronavirus spread deepened with six new cases. The repo rate is the rate at which the central bank lends money to commercial banks in the event of any shortfall of funds. A repo rate cut is an incentive for banks to borrow funds from the central bank. The reverse repo rate will remain unchanged at 4.75 percent. Both the repo rate cut and the CRR reduction are the first since April 2018.

Source: bd News24 March 23, 2020 14:48 UTC