In a decisive move to curb the high inflation plaguing the economy, Bangladesh Bank has announced an increase in its overnight repo rate to 7.75%. The central bank’s spokesperson, Mezbaul Haque, revealed this development at a press conference, indicating that the rate hikes also include adjustments to the Special Deposit Facility (SDF) and Repo Discount Facility (RDF) rates, now standing at 9.75% and 5.75%, respectively.
The aggressive monetary policy stance aims to reduce inflation to 8% by December and further to 6% by June of the following year. In reaction to these changes, commercial banks in Bangladesh have been quick to revise their lending rates based on the SMART rate system.
Habibur Rahman, the Chief Economist of Bangladesh Bank, has expressed optimism about the effectiveness of these policy adjustments. According to Rahman, early indications suggest that these measures are successfully managing inflationary pressures within the market. With these strategic rate increases, Bangladesh Bank is taking a firm stand against inflation to stabilize the country’s economic environment.
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