Bangladesh raises repo rate by 50 basis points, the second hike in a month, to rein in inflation - News Summed Up

Bangladesh raises repo rate by 50 basis points, the second hike in a month, to rein in inflation


On May 29, Bangladesh Bank raised the key interest rate by 25 basis points to 5 percent, the first increase in a decade. The repurchase agreement rate is the rate at which the central bank lends money to commercial banks in the event of any shortfall of funds. "If this situation continues in the upcoming months, persistent depreciation pressures on the Bangladesh taka will continue to push up domestic inflation further," Bangladesh Bank warned. Therefore, Bangladesh Bank claimed, the monetary policy emphasises containing inflationary pressure while supporting investment and employment-generating activities. The Bangladesh economy has shown strong resilience against COVID-19 shocks and recovered the growth rate quickly in FY21 and FY22.


Source: bd News24 June 30, 2022 10:34 UTC



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