Bangladesh Bank has increased the repo rate by 0.25% raising it from 5.5 percent to 5.75 percent to control inflation.
The central bank took the decision at the 56th meeting of the Monetary Policy Committee (MPC) held on Thursday (29 September). The new repo rate will be effective from October 2.
However, the reverse repo rate will remain unchanged at the existing 4 percent, said a notification of the central bank.
The Bangladesh Bank raised the policy rate from 4.75% to 5% in May. Later in the monetary policy for the current fiscal year, the central bank hiked the rate for the second time in June to 5.50 percent.
