Bank lending rates in Bangladesh rose to 13.55% in April, despite a reference rate cut, due to the SMART rate increase.

Bank lending rates in Bangladesh rose to 13.55% in April, despite a reference rate cut, due to the six-months moving average rate of treasury bill (SMART) climbing to 10.55%. The Bangladesh Bank cut the interest rate margin from 3.50% to 3.00% to ease the cost of borrowing and alleviate pressure on businesses. This move aims to control inflation by making borrowing more expensive for commercial banks and the private sector.