Monetary policy statement for fiscal 2020-21

BB lowers borrowing costs to boost money flow


FE ONLINE REPORT | Published: July 29, 2020 16:17:51 | Updated: July 30, 2020 10:41:30


-FE file photo

The central bank unveiled an expansionary monetary policy on Wednesday for current fiscal year lowering borrowing costs to boost money flow for revamping the pandemic-hit economy.

As part of the expansionary policy stance, the Bangladesh Bank has reduced the repurchase rate by 50 basis points to 4.75 per cent from 5.25 per cent.

The central bank also reduced the reverse repo rate by 75 basis points to 4 per cent from 4.75 per cent.

The monetary policy statement for fiscal 2020-21 is available on the central bank’s website.

Besides, the bank rate has been re-fixed at 4.0 per cent from 5.00 per cent to rationalise it with the current interest rate regime, the statement added.

“All these rates change will be effective soon,” the BB said in its monetary policy statement (MPS) for the FY 2020-21.

siddique.islam@gmail.com

Share if you like