No interest rate cap on credit card loans: BB

Banks can now fix interest rate of their credit cards, Bangladesh Bank (BB) said today after allowing the lenders to charge up to 12 per cent interest on consumer credit.

"There is no cap on credit card loans," the central bank said in its monetary policy for January-June period of 2022-23 fiscal year.

The monetary policy was unveiled at Bangladesh Bank's headquarters in Dhaka.

The BB said it will consider removing the lending rate cap in the presence of a 'suitable economic condition'.

Banks have been following a 9 per cent cap on lending since April 2020 as per the instruction of the BB to allow businesses to cut cost of funds.