Bangladesh Bank has decided to increase the policy rate by 50 basis points to 8.5 percent. The new interest rate will come into effect from Thursday. Central bank demands to take this decision to reduce high inflation.

This was informed in a circular from Bangladesh Bank on Wednesday. With this, the central bank increased the policy interest rate several times from May 2022.

The notification informed that this decision was taken in the meeting of the monetary policy committee of the central bank today (Wednesday).

Apart from this, the Standing Lending Facility (SLF) rate has been increased by 50 basis points to 10 percent. Standing Deposit Facility (SDF) rate hiked by 50 basis points to 7 percent.