‘Loan interest won’t exceed 14pc’

Business Report :
Bangladesh Bank Governor Abdur Rouf Talukder on Thursday assured business leaders that loan interest would not exceed 14%.

The central bank governor gave the assurance after leaders of the Federation of Bangladesh Chambers of Commerce & Industries expressed concerns about the interest rate during a meeting today.

Speaking to reporters after the meeting, FBCCI President Mahbubul Alam said, “Even if the banks are given the power to determine the loan interest, it will be controlled by the Bangladesh Bank.
Earlier, the central bank had signalled its intention to return to a market-driven interest rate.
The Bangladesh Bank on 8 May hiked the policy rate by 50 basis points to 8.5%.

Such a rate has been prescribed by the International Monetary Fund to rein in inflation and it was one of the conditions for the lender’s $4.7 billion loan to Bangladesh.