MPD Circular No. 03: Re-fixation of Interest Rate Corridor (IRC)

MONETARY POLICY DEPARTMENT
Bangladesh Bank
Head Office, Dhaka. website: www.bb.org.bd
MPD Circular No. 03 dated: 25 August 2024
10 Bhadro 1431

To:
Chief Executive/Chief Executive Officer
All Scheduled Banks, Non-Bank Financial Companies and Foreign Bank Companies Established in Bangladesh

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

Reference: Circular No. 02 dated 08 August 2024 regarding the above subject.

1. This circular is issued in response to representations received from the banking sector regarding Circular No. 02 dated 08 August 2024 on the above subject.

2. Accordingly, the Monetary Policy Committee meeting held today, 25 August 2024, has decided to increase the Short-Term Deposit Rate (SDR) by 50 basis points from 8.50% to 9.00%. Furthermore, the Short-Term Deposit Rate for Banks' Head Office Treasury (HOF) has been increased by 50 basis points from 10.00% to 10.50%, and the Short-Term Deposit Rate for Banks' Branches (BOF) has been increased by 50 basis points from 7.00% to 7.50%.

3. The above decision will be effective from 27 August 2024.

Yours faithfully,

(Mahmuda Parvin)
Deputy Governor (MPD)

Copy: 9530059