BB cuts CRR, repo rate to enable banks to implement Tk 727.5b stimulus

Bangladesh Bank (BB) has re-fixed the Cash Reserve Ratio (CRR) at 4.0 per cent on bi-weekly average basis with a provision of minimum 3.5 per cent on a daily basis effective from April 15, 2020. 

“Now it has been decided to re-fix this CRR at 4.0 per cent on bi-weekly average basis with a provision of minimum 3.5 per cent on a daily basis effective from April 15, 2020,” reports agencies citing a BB circular on Thursday. 

Earlier, the central bank fixed the CRR for all the scheduled banks in Bangladesh, including Shariah-based banks, at 5.0 per cent with Bangladesh Bank on a bi-weekly average basis with a provision of minimum 4.5 per cent on a daily basis of their average total demand and time liabilities (ATDTL). 

The circular also stated that the central bank has cut repo rate further to enable the banks to implement the Tk 727.5 billion stimulus announced by Prime Minister Sheikh Hasina for the impact of the coronavirus pandemic on the economy. 

The repo rate has been lowered to 5.25 per cent from 5.75 per cent. The new rate will be effective from April 12.