BB increases policy rate by 50 basis points to 8.5 pc
Staff Correspondent
Bangladesh Bank (BB) has increased the policy rate by 50 basis points to 8.5 percent in a bid to tame the running inflationary pressure.
The new rate takes effect from Thursday, said the central bank in a notice issued on Wednesday.
The monetary policy committee of the central bank took the decision during a meeting held at the BB headquarters in Motijheel area of Dhaka this noon.
Since inflation has been stayed above nine percent, the BB has been following a contractionary policy in its efforts to reduce demand and contain prices.
Additionally, to refine liquidity management, the Standing Lending Facility (SLF) rate has been increased by 50 basis points to 10 percent.
Besides, the Standing Deposit Facility (SDF) rate has been increased by 50 basis points as well to seven percent, said the notice.
The BB has been raising the policy rate for several times since May 2022 to increase the cost of money.
In the beginning of October last year, for instance, the central bank increased its key policy rate by 50 basis points to 7.75 percent -- the largest hike in a decade.
In January this year, the policy rate was again hiked by 25 basis points, reaching 8 percent.
