Bangladesh Bank has raised the rate of interest on loans from the Export Development Fund by 1.0 percentage point to 4.0 per cent.
The central bank also raised the rate of interest on borrowings from the fund by banks to 2.5 per cent from 1.5 per cent, reports bdnews24.com citing a notice issued on Tuesday.
Entrepreneurs can take loans from the $7.0 billion fund to import raw materials and equipment needed to produce goods for exports.
The central bank cut the interest rate to 2.0 per cent in April 2020 when the coronavirus pandemic started to shatter the global economy. It was then increased back to 3.0 per cent in July 2021.
Before that, Bangladesh Bank charged the London interbank offer rate, plus 1.5 per cent. Later, it scrapped the LIBOR system.