Bangladesh’s interbank call money rate has remained stable at 10% since November 2024, following the central bank’s policy rate hike to 10% on October 27, 2024, as part of efforts to tighten money supply and control inflation. This rate, the highest in 11 years, was last exceeded in January 2013 at 10.29%. The steady rate is attributed to reduced loan demand amid political unrest, increased excess liquidity (Tk 2,15,002 crore in December), and banks’ reluctance to borrow at high costs. Lending rates have risen to 14-15%, raising concerns for businesses. Inflation slowed to 9.94% in January 2025 from 11.38% in November 2024 but remains above 9% since March 2023. The call money market, used by banks for short-term liquidity management, has seen less activity due to the government’s reduced borrowing and falling treasury bill rates.
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