Banks of the country took a loan of Tk 3 thousand 187 crore from Kolmani market on Wednesday. Meanwhile, the average interest rate stood at 9.13 percent. Which is the highest in the last 11 years, Bangladesh Bank said.
Money market is where banks borrow money from each other for a day to meet their daily needs. Earlier, in 2012, the average interest rate on full-year loans was 12.82 percent.
According to central bank data, since 2013 interest rates have not been so high in the solvency market.
Bangladesh Bank’s report on why the interest rate is increasing says that the average interest rate in June this year was 6.05 percent, in July it increased slightly to 6.42 percent.
The lending rate rose to 7.23 percent in October, a day after the central bank hiked the key policy rate. At the beginning of December, the Kolmani rate stood at 8.53 percent.
The central bank has raised the policy rate or repo rate — the rate at which the central bank lends to scheduled banks — several times this year to curb inflation. Due to these reasons, the fund cost of the banks has increased and it has affected the financial market.
Bangladesh Bank last raised the policy rate by 50 basis points to 7.75 percent. With this, the policy rate has increased by 125 basis points in less than two months.
Those concerned say that banks are not getting enough deposits for customers due to high inflation. Their cash flow, too, goes to the central bank to buy dollars. Due to these reasons, the interest rate in the money market is increasing.