Bangladesh Bank has raised the repo rate to 5.75 percent from 5.5 percent with a view to control inflation, reports UNB.
Country’s central bank took the decision at the 56th meeting of the Monetary Policy Committee (MPC) held in Capital on Thursday.
In the midst of rising inflation in the global market, Bangladesh is also witnessing the same. Hence, in order to embattle inflation, the committee raised the repo rate, which will be effective from October 2 (Sunday).The reverse repo rate will remain unchanged at the existing 4 percent, said a notification of the central bank.
The repo rate is the key monetary policy rate of interest at which the central bank lends money to banks in the short term, essentially to control credit availability, inflation, and economic growth.
The Bangladesh Bank notification also stated that despite the economic recovery after Covid-19 fallout, the imbalance between global demand and supply still exists as supply chain problems caused by the ongoing Russia-Ukraine war have worsened.
Bd-pratidin English/Lutful Hoque
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