To rein in inflation, Bangladesh Bank has decided to further increase the interest rate.
On Tuesday, 22 October, the central bank announced a 50-basis point hike in the policy interest rate, bringing the overnight repo rate to 10%. As a result, interest rates on loans and all other banking products will rise accordingly.
According to the central bank, the new policy rate will come into effect on 27 October.
This marks the 11th increase in the policy interest rate since May 2022. The policy interest rate, or repo rate, is the rate at which commercial banks borrow from the central bank.
According to data from the Bangladesh Bureau of Statistics (BBS), consumer inflation in Bangladesh eased slightly in September, dropping from 10.49% in the previous month to 9.92%.
