Thursday, January 5, 2012
Bangladesh Bank Lifts Repo Rate 50bps to 7.75%
The Central Bank of Bangladesh increased its repurchase rate by 50 basis points to 7.75% from 7.25% previously; also lifting the reverse repo rate by the same margin to 5.75% from 5.25 percent. The Bank also moved on Wednesday to repeal interest rate caps on bank loans, which is designed to add a further contractionary impulse to the monetary policy mix. The Bank last raised the repo rate by 50 basis points around mid 2011. Bangladesh reported inflation of 11.58% in November, and 11.42% in October 2011. The economy of Bangladesh expanded by 5.83 percent in the year to June 2011. Bangladesh's currency, the Bangladeshi Taka (BDT), last traded around 82 against the US dollar.