The lending rate ceiling in Banks surges to 12.38% amid inflation concerns. The central bank’s move to raise the policy rate aims to address inflationary pressures, resulting in an increase from 10.7% in October. The six-month moving average interest rate for 182-day treasury bills rose to 8.63% in February, prompting the lending rate hike.
The Bangladesh Bank’s decision to implement a new interest rate regime removed the previous 9% lending rate ceiling in July 2023. Despite market-oriented lending rates, the reference rate’s inclusion limits banks from exceeding the interest rate margin. Economists note that low interest rates impact dollar prices, contributing to local currency devaluation
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