Regulatory Alerts2024-01-17
Added
MPD Circular No. 01: Re-fixation of Interest Rate Corridor (IRC)
The Bangladesh Bank has re-fixed the Interest Rate Corridor (IRC) for all scheduled banks and financial institutions operating in Bangladesh, effective from January 21, 2024. The policy rate (repo rate) has been increased by 25 basis points from 7.75% to 8.00%. Concurrently, the upper limit of the IRC, the Standing Lending Facility (SLF), has been reduced by 25 basis points from 9.75% to 9.50%, and the lower limit, the Standing Deposit Facility (SDF), has been increased by 75 basis points from 5.75% to 6.50%.
Monetary Policy Department Bangladesh Bank Head Office, Dhaka. website: www.bb.org.bd MPD Circular No. 01 Date: 17 January 2024 03 Magh 1430 Managing Director/Chief Executive All Scheduled Bank Companies and Financial Institutions operating in Bangladesh. Subject: Re-fixation of Interest Rate Corridor (IRC) Dear Sir/Madam, Your attention is drawn to MPD Circular No. 04 regarding the policy interest rate issued on 26 December 2023. 02. Now, in accordance with the decision of the 2nd meeting of the reconstituted Monetary Policy Committee held on 13 January 2024, the policy rate (repo rate) has been fixed at 8.00 percent, an increase of 25 basis points from the existing 7.75 percent. Additionally, to manage the liquidity of banks with greater efficiency, the upper limit of the Interest Rate Corridor, the Standing Lending Facility (SLF), has been reduced by 25 basis points from the existing 9.75 percent to 9.50 percent, and the lower limit of the Interest Rate Corridor, the Standing Deposit Facility (SDF), has been increased by 75 basis points from 5.75 percent to 6.50 percent. 03. The aforementioned decision will be effective from 21 January 2024. Yours faithfully, (Md. Abdul Kaium) Director (Research) Phone: 9530059