In response to inflation concerns, the central bank of Bangladesh has raised the lending rate for non-bank financial institutions (NBFIs) by 25 basis points to 13.18%. The interest rates on deposit collection for NBFIs have also increased by 25 basis points to 10.18%, effective from November 30.
This move follows the recent 50 basis points increase in the key policy rate to 7.75%, aiming to make borrowing more expensive and control inflation. The interest margin with the SMART (Six Month Moving Average Rate of Treasury Bill) has been raised by 25 basis points to 3.75%, resulting in a calculated lending rate of 11.18%. The central bank’s measures are seen as contractionary, aimed at addressing the liquidity crisis and controlling inflation, leading to increased interest rates across various loan types.
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