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Bangladesh Bank Cuts SDF Rate to 8% to Boost Market Efficiency and Liquidity Management

August 14, 2025

Under the monetary policy’s Interest Rate Corridor framework, the BB has reduced the standing deposit facility rate by 50 basis points—from 8.50% to 8.00%—in order to enhance the efficiency of the interbank money market (call money market) and strengthen liquidity management. The ceiling rate for the standing lending facility will remain at 11.50%, while the overnight repo policy rate will stay fixed at 10.00%. These changes entered into effect on 16 July 2025.

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