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Cost of borrowing rises as policy rate hiked yet again - The Business Standard

The Bangladesh Bank has increased its key policy rate by 50 basis points to 7.75% to control inflation by making borrowing more expensive for commercial banks and the private sector. With the new hike, the policy rate saw an increase by 125 basis points in less than two months as the central bank increased it by 75 basis points in October. The policy rate, or repo rate, is the interest at which the central bank lends to commercial banks. Also, the interest margin with the SMART (six-month moving average rate of treasury bills), which is the reference lending rate, has been hiked by 25 basis points to 3.75%, leading to a calculated lending rate of 11.18%, meaning ...

tbsnews.net     Nov 26, 2023