BB reduces reverse repo rate by 50 basis points

Business Report :

Bangladesh Bank has lowered the standing deposit facility (SDF) rate also known as reverse repo rate by 50 basis points.

However, the policy rate or the overnight repo rate remains unchanged.
The monetary policy department of the central bank issued a circular in this regard on Tuesday.
The circular states that, under the Interest Rate Corridor framework of the monetary policy, the lower bound of the policy interest rate corridor – Standing Deposit Facility (SDF) – has been revised downward by 50 basis points from 8.50per cent to 8per cent in order to further enhance the dynamism of the interbank money market (call money market) and streamline liquidity management.

In addition, the upper bound of the policy interest rate corridor – Standing Lending Facility (SLF) – will remain unchanged at 11.5per cent, and the overnight repo policy rate will also remain unchanged at 10per cent.