The Bangladesh Bank is planning to raise policy rates in the upcoming monetary policy for the next fiscal year with the aim of taming inflation by making money costlier.
The hike in the key interest rates, also known as the repurchase agreement (repo) and reverse repo rates, will make money costlier, thereby discouraging banks from lending.
The repo rate is the rate at which banks borrow funds from the Bangladesh Bank, while the reverse repo rate is the rate at which banks deposit their excess funds with the central bank.
