MPD Circular No. 02: Re-fixation of Interest Rate Corridor (IRC)

The Bangladesh Bank reduces the lower bound of the Interest Rate Corridor, setting the Standing Deposit Facility (SDF) rate at 8.00% per annum, down from 8.50%. The upper bounds remain unchanged, with the Standing Lending Facility (SLF) at 11.50% and the Overnight Reverse Repo rate at 10.00%. This re-fixation applies to the interbank money market and effective from July 16, 2025.

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Monetary Policy Department
Bangladesh Bank
Head Office, Dhaka. website: www.bb.org.bd

Monetary Policy Circular No. 02 dated: 15 July 2025 31 Asharh 1432

Deputy Governor / Chief Executive
Scheduled Banks, Non-Bank Financial Companies and other Institutions

Subject: Re-fixation of Lower Bound of Interest Rate Corridor (IRC)

Dear Sir,

Reference is invited to Monetary Policy Circular No. 05 dated November 22, 2024 regarding the Interest Rate Corridor.

Accordingly, under the monetary policy framework, the lower bound of the Interest Rate Corridor for the interbank money market operations and the corresponding policy rate has been reduced by 50 basis points from 8.50% per annum to 8.00% per annum for the Standing Deposit Facility (SDF). Furthermore, the upper bound of the Interest Rate Corridor remains unchanged, with the Standing Lending Facility (SLF) at 11.50% per annum and the Overnight Reverse Repo rate at 10.00% per annum.
The decision will be effective from July 16, 2025.

Yours faithfully,

(Mahfuzur Rahman Khan)
Deputy Governor (Monetary Policy)
Ref: 9530059

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MPD Circular No. 02: Re-fixation of Interest Rate Corridor (IRC)

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