BB reduces lending rate margin by 25 basis points

The central bank has brought down the maximum lending rate margin by 25 basis points to mitigate the rising interest rates, as the benchmark interest rate called SMART jumped to 9.61 per cent for March 2024, officials said.

The banking regulation and policy department (BRPD) of Bangladesh Bank (BB) issued a circular in this regard on Thursday, readjusting the maximum lending rate margin down to 3.50 per cent from the existing 3.75 per cent.

Talking to the FE, BRPD Director Shahriar SIddique said the policy rate was enhanced earlier by 50 basis points to 8.0 per cent and it was well transmitted in the interest rates.

As a matter of fact, he said, the central bank has decided to cut the lending rate margin as part of the market adjustment move to stabilise the rates in the market.

The circular said the lending rate margin will be 2.5 per cent instead of 2.75 per cent in the case of loans for pre-shipment export and agriculture.

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