BB hikes policy rate to 10pc

Bangladesh Bank (BB) has increased the policy or repo rate further by 50 basis points to 10 percent for containing inflation.

It will be effective from October 27, the central bank said in a circular issued today.

Additionally, the Standing Lending Facility (SLF) has also increased by 50 basis points, reaching 11.5 percent.

The Standing Deposit Facility (SDF) has also been hiked by 50 basis points, reaching 8.5 percent.

The SLF is the facility through which the central bank grants overnight credits (emergency funds) to eligible banks, while the SDF allows banks to deposit their excess liquidity.

Earlier yesterday, the Bangladesh Bank also decided that banks will be able to borrow through repurchase agreements (repo) from the central bank once a week, only on Tuesdays. (BSS)