BB increases policy rate to 7.25% to contain inflation

Bangladesh Bank (BB) has raised the policy rate (repo) by 75 basis points to 7.25 percent to contain inflation.

The highest ceiling of policy rate corridor of standing lending facility (SLF) rate has been raised to 9.25 per cent from 8.5 per cent while the lowest limit of standing deposit facility (SDF) rate has been raised to 5.25 per cent from 4.5 per cent, as per a BB circular.

The special repo rate was renamed as SLF and the reverse repo renamed as SDF.

Earlier in June 18, the central bank, in its monetary policy statement, raised repurchase agreement (repo) rate to 6.5 per cent from 6 per cent to control inflation and regulate the overall interest rate environment.