Bangladesh hikes repo rate to rein in inflation

DHAKA, Oct. 22 (Xinhua) — The central bank of Bangladesh on Tuesday raised policy rate to 10 percent, known as the repo rate, by 50 basis points, to bring inflation to its comfort zone.
The central bank said the new policy rate will be effective from Oct. 27.
The repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.
This was the 11th straight rate hike since May 2022 as consumer prices have remained at an elevated level. The latest move came in less than a month after the central bank increased the repo rate to 9.50 percent from the previous 9 percent.
Bangladesh’s inflation eased slightly in August, but remained at double-digit levels for the second consecutive month as consumer prices persistently stayed high.
Bangladesh’s inflation decreased to 10.49 percent in August from 11.66 percent in July. ■