Currency

Bangladesh Bank hikes repo rate to 8%, eyes free-floating currency By Investing.com




DHAKA – Bangladesh Bank has increased its overnight repurchase agreement rate by 25 basis points to 8%, signaling a continued tight monetary stance. The decision, under the leadership of Governor Abdur Rauf Talukder, is part of a broader strategy to curb inflation, which the central bank aims to bring down to below 6% by the end of June this year.

The move comes amid the taka’s recent depreciation and inflationary pressures that are particularly concerning as the country approaches Ramadan.

In addition to raising the repo rate, Bangladesh Bank has also announced plans to transition to a freely floating exchange rate system. This shift is in alignment with the prerequisites for an International Monetary Fund (IMF) loan program that the country is pursuing.

Currently, the import rate stands at Tk 110, and the central bank’s strict monetary policies are expected to continue into the second half of the year.

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