Central bank raises policy rate to 10pc

Bangladesh Bank has increased the policy interest rate by 50 basis points to 10 per cent as part of its efforts to tame inflation.

The fresh enhancement of the repo rate in less than a month will come into effect on October 27, the central bank said on Tuesday.

Last month, the regulator raised the rate to 9.5 per cent from 9.0 per cent.

In line with the latest development, the IRC or Interest Rate Corridor also changed with its upper ceiling known as SLF (standing liquidity facility) increased to 11:50 per cent from the existing 11:0 per cent while the floor rate called SDF (standing deposit facility) enhanced to 8:50 per cent from the prevailing 8:00 per cent.

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