The interbank call-money rate has slightly eased, settling at 9.96% on December 18, down from 10.10% on December 12. This drop comes after a steady rise since June 2023, when the rate was as low as 6.0%. The Bangladesh Bank’s liquidity support to Shariah-based banks has been a key factor in this recent decline. The central bank injected Tk 225 billion into these banks, which had previously borrowed from other institutions to meet their liquidity needs. Additionally, the central bank has been borrowing exactly the amount required by the government, unlike previous periods when the government borrowed more than necessary. Commercial bankers remain cautious, noting that the reduction is not substantial enough to draw definitive conclusions. Private sector credit growth in October 2024 stood at 8.3%, while total interbank transactions on Wednesday reached Tk 46.60 billion, with short-term rates for longer durations remaining above 10%.
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