9% lending rate cap to continue: BB

Bangladesh Bank (BB) Governor Fazle Kabir on Thursday said the lending rate cap at 9 percent will continue despite rising inflation and deposit rates.

Kabir made the comments at the launch of the monetary policy stance for fiscal 2022-23 at the central bank headquarters in Dhaka.  

There was speculation that the cap on lending rate may be withdrawn or adjusted upward as banks have to spend more for deposits amid rising inflation.

From April 2020, the BB in consultation with the finance ministry capped all types of lending rates at 9 percent. The deposit rate for individual savers was aligned with the immediate past three months’ inflation average.