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.

March 31, 2024
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