Dhaka, Bangladesh (BBN)– The central bank of Bangladesh will take the decision on removal or continuation of restriction on lending rate after reviewing extensively the aggregate monetary situation and developments in real sectors.
“It’s a major policy decision. So it is very difficult to say right now whether the lending rate cap will be lifted or will continue,” Bangladesh Bank Senior Deputy Governor Nazrul Huda told reporters on Sunday replying to a query.
He also said the central bank has imposed the lending cap on a special ground.
On April 19, 2009, the central bank asked the commercial banks to fix lending rate ceiling for credit operations in five specific areas at 13 per cent to help mitigate the impact of the on-going global economic meltdown.
The five areas for which the ceiling on lending rate is now fixed are: agriculture, term loans to large and medium-scale industries, working capital to large and medium-scale industries, housing and trade financing.
BBN/SSR/AD-31Jan11-2:00 pm (BST)