Bangladesh should maintain its policy rate at 10 percent until the middle of fiscal year 2025-26, the International Monetary Fund (IMF) has said, citing the inflationary pressures of a weaker currency and the heightened sensitivity of inflation expectations to exchange rate depreciation.
The Bangladesh Bank is expected to keep the policy rate unchanged at 10 percent in its monetary policy stance for the second half (January to June) of the current fiscal year as inflation eased slightly in December.
Capital can quickly exit the market, putting pressure on Bangladesh’s foreign reserves and currency stability.
Three months ago, the policy rate was hiked for the last time by 50 basis points to 8.5%
The 75 basis-point rise in policy rate will be effective from Oct 5
Bangladesh Bank today said it would pursue a cautiously accommodative policy stance in the second half of the current fiscal year to contain inflationary and exchange rate pressures.
Bangladesh Bank today relaxed the lending rate cap for consumer loans, allowing banks to hike it up to 3 percentage points from the current level.
Bangladesh Bank today hiked its key interest rate or policy rate by 25 basis points to 5.75 per cent with a view to containing the inflationary pressure.
Bangladesh Bank today relaxed the lending rate cap for consumer loans, allowing banks to hike it up to 3 percentage points from the current level.
Bangladesh Bank today hiked its key interest rate or policy rate by 25 basis points to 5.75 per cent with a view to containing the inflationary pressure.
