The central bank raised the repo rate for the last time by 75 basis points, the highest single jump in 12 years, to 7.25 percent on Sept 29. The latest is the third hike in around five months, as the Bangladesh Bank has maintained contractionary monetary policy since June amid inflation rising at a near double-digit rate. Besides banks, their clients will also need to pay more for loans as the central bank has raised the ceiling of interest. For interest, the banks can now add up to 3.75 percentage points to the reference rate, which is Six months Moving Rate of Treasury Bill or SMART, in place of 3.5 percentage points.

Source: bd News24 November 26, 2023 14:31 UTC