From March 9, 2025, Bangladesh Bank (BB) will implement a unified repo rate of 10% for all tenures, replacing the current 7-day, 14-day, and 28-day repo windows with varying rates of 10.10%, 10.20%, and 10.25%, respectively. The decision follows a 50-basis-point reduction in daily CRR to ease liquidity pressure and the planned phase-out of the 28-day repo facility by April 3, 2025, and the 14-day facility by June. In the latest auction on March 4, banks borrowed Tk 33.91 billion, Tk 11.0 billion, and Tk 116.70 billion through different repo tenures. This move, aligning with IMF recommendations under a $4.7 billion support package, is part of BB’s monetary policy modernization. Analysts expect it to lower interest rates and impact treasury yields. By July 2025, only the 7-day repo window will remain, pushing banks to adopt a more conservative approach to government securities investment.
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