Central bank raises policy rates by 75 points to 7.5 percent

The Bangladesh Bank (BB) on Wednesday raised the policy rate by 75 basis points to 7.25 percent from 6.5 percent in order to tame the growing inflation.

According to the decision of the 60th meeting of the Monetary Policy Committee held on Wednesday (October 4), the overnight repo policy interest rate has been increased by 75 basis points from the existing 6.50 percent to 7.25 percent.

Besides, the policy interest corridor cap Standing Lending Facility (SSF) rate increased by 75 basis points to 9.25 percent from the existing 8.50 percent, and the policy interest corridor floor Standing Deposit Facility (SDF) rate by 75 basis points from the existing 4.50 percent. It was rescheduled to 5.25 percent by increasing the points.

All the decisions will be effective from Thursday (October 5).