AGL 5.95 Decreased By ▼ -0.13 (-2.14%)
ANL 9.26 Decreased By ▼ -0.14 (-1.49%)
AVN 80.82 Decreased By ▼ -0.64 (-0.79%)
BOP 5.20 Decreased By ▼ -0.07 (-1.33%)
CNERGY 4.86 Decreased By ▼ -0.04 (-0.82%)
EFERT 81.82 Increased By ▲ 0.27 (0.33%)
EPCL 53.94 Decreased By ▼ -0.06 (-0.11%)
FCCL 14.29 Decreased By ▼ -0.11 (-0.76%)
FFL 5.93 Decreased By ▼ -0.12 (-1.98%)
FLYNG 7.44 Decreased By ▼ -0.12 (-1.59%)
FNEL 4.95 Decreased By ▼ -0.05 (-1%)
GGGL 9.18 Decreased By ▼ -0.14 (-1.5%)
GGL 16.51 Decreased By ▼ -0.19 (-1.14%)
HUMNL 6.14 Increased By ▲ 0.45 (7.91%)
KEL 2.77 Decreased By ▼ -0.02 (-0.72%)
LOTCHEM 30.81 Increased By ▲ 0.26 (0.85%)
MLCF 27.45 Decreased By ▼ -0.34 (-1.22%)
OGDC 74.27 Increased By ▲ 0.27 (0.36%)
PAEL 15.98 Decreased By ▼ -0.21 (-1.3%)
PIBTL 5.21 Decreased By ▼ -0.02 (-0.38%)
PRL 17.01 Decreased By ▼ -0.28 (-1.62%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
TELE 10.00 Decreased By ▼ -0.04 (-0.4%)
TPL 7.65 Decreased By ▼ -0.05 (-0.65%)
TPLP 19.41 Decreased By ▼ -0.36 (-1.82%)
TREET 22.72 Decreased By ▼ -0.47 (-2.03%)
TRG 146.80 Decreased By ▼ -0.55 (-0.37%)
UNITY 17.09 Decreased By ▼ -0.10 (-0.58%)
WAVES 10.33 Decreased By ▼ -0.05 (-0.48%)
WTL 1.42 Decreased By ▼ -0.04 (-2.74%)
BR100 4,330 Increased By 3.4 (0.08%)
BR30 16,296 Increased By 46.9 (0.29%)
KSE100 42,904 Increased By 23.3 (0.05%)
KSE30 15,805 Decreased By -4.6 (-0.03%)
Follow us

DHAKA: Bangladesh’s central bank raised its key interest rates by half a percentage point on Thursday, its second hike in a month, as it battles stubbornly high inflation.

The central bank said it had raised the repo rate, which it uses to inject money into the banking system, by 50 basis points to 5.50% to deal with demand side pressures and to ensure the flow of funds to priority and productive sectors.

The move came after the south Asian country’s annual inflation hit an 8-year high in May. The central bank last raised the key interest rate by 25 basis points on May 29.

The bank said it would continue its support to implement the government’s ongoing 2 trillion taka ($21.40 billion) stimulus packages alongside its own refinance schemes in the face of new adversities, including the Russia-Ukraine war and the COVID-19 pandemic.

The central bank also raised the private sector credit growth target to 14.1% for the 2022/23 financial year that starts on July 1 from 13.1% in the current financial year.

It said it would introduce a new refinance line of credit for import-substituting products to minimise import dependency and save valuable foreign exchange reserves.

Bangladesh’s foreign exchange reserves fell to $41.9 billion as of June 28 from $46.4 billion at the end of June 2021, the central bank said.

With reserves dwindling, the government has taken a series of measures including curbing non-essential imports, relaxing rules to attract remittances from millions of migrants living overseas and restraining foreign trips of its officials.

Bangladesh aims to boost economic growth to 7.50% for the 2022/23 financial year from 7.25% in 2021/22 on the back of garment exports and remittances from Bangladeshis working overseas.

The central bank, however, said deadly flooding this month and a prolonged Russia-Ukraine war could hold back growth.

Comments

Comments are closed.

Bangladesh raises interest rate by 50bps to fight inflation

PM Shehbaz urges Turkiye to invest in Pakistan's mega solar project

Ishaq Dar says Pakistani delegation to leave for Russia for potential oil deal

Pakistan secures €150mn in aid from ECO Trade and Development Bank: Marriyum

Owned by resident Pakistanis: FBR starts taxing hundreds of foreign properties

Ukraine president’s chief of staff says Russia ‘will pay’ for Soviet-era famine

China’s Shenzhen Energy signs long-term LNG contract with BP

Xi tells Kim China willing to work with North Korea for ‘world peace’

Argentina look to Messi to salvage World Cup bid

Overnight reverse repo (ceiling) rate to be 17pc

Turkish cos to take up profit repatriation, taxation issues with PM