Commercial banks followed by raising lending rates, aligning them with a 25 basis point increment based on the six-month moving average rate of treasury bills, known as SMART rates.
The Bangladesh Bank has raised the overnight repo rate by 50 basis points (bps) from 7.25 per cent to 7.75 per cent to fight inflation.
The standing deposit facility and standing drawing facility rates were hiked by 50 bps each to 9.75 per cent and 5.75 per cent respectively.
The aim is to reduce inflation to 8 per cent by December on a point-to-point basis.
The measures are aimed at reducing inflation to 8 per cent by December on a point-to-point basis.
The target is to further reduce inflation to 6 per cent by June next year, the central bank’s spokesperson Mezbaul Haque was quoted as saying by domestic media reports.
Fibre2Fashion News Desk (DS)