Bangladeshi central bank hikes repo rate to tame inflation

Dhaka, Sep 30 (IANS) The central bank of Bangladesh has hiked the repo rate by 25 basis points (bps) to 5.75 per cent in a bid to rein in inflation.The Monetary Policy Committee of the Bangladesh Bank (BB) took the decision in its 56th meeting held Thursday in the capital Dhaka. The new rate will come into effect October 2, Xinhua news agency reported, citing a circular issued by the BB.The bank earlier in June increased its policy rate (the repo rate) by 50 bps to 5.50 per cent from 5.00 per cent to deal with the demand-side pressures while ensuring the required flow of funds to the priority and production sectors to promote supply-side activities.On May 29, the bank raised the key interest rate by 25 bps to 5 per cent, the first increase in a decade.
--IANS int/shs

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