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

MONITORING POLICY DEPARTMENT Bangladesh Bank Chief Controller of Accounts, Dhaka. website: www.bb.org.bd MPD Circular No. 02 dated: 08 May 2024 25 Boishakh 1431 To Chief Executive Officer / Chief Executive Officer All Scheduled Banks, Non-Bank Financial Institutions and Other Financial Companies in Bangladesh

Dear Sir,

Reference is made to MPD Circular No. 01 dated 17 January 2024 regarding the Short-Term Interest Rate (STIR).

2. Accordingly, the Monetary Policy Committee meeting held today, 08 May 2024, has decided to increase the lower bound of the Short-Term Interest Rate (STIR) corridor from 8.00% to 8.50% by increasing the margin by 50 basis points. Furthermore, the upper bound of the Short-Term Interest Rate corridor for banks and other financial institutions under the Standardized Pricing Framework (SPF) has been increased from 9.50% to 10.00% by increasing the margin by 50 basis points, and the lower bound of the Standardized Pricing Framework (SPF) for Short-Term Interest Rate has been increased from 6.50% to 7.00% by increasing the margin by 50 basis points.

3. The above decision will be effective from tomorrow, 09 May 2024.

Yours faithfully,

(Md. Abdur Rouf) Deputy Governor (Monetary) Phone: 9530059