BB raises policy rate to 10%

The Bangladesh Bank has increased the policy rate, a key monetary policy tool, by 50 basis points to 10%.

It will be effective from 27 October, the central bank said in a circular issued on Tuesday (22 October).

On 24 September, the central bank increased the policy rate to 9.5% from 9%. It was effective from the next day.

With the latest hike, the policy rate has been increased ten times since May 2022, when it was only 5%.

It is also the fifth time the Bangladesh Bank has hiked the rate this year.