Dhaka, Bangladesh (BBN)– Bangladesh Association of Banks (BAB) has asked its member banks to bring down the interest rates on deposit and lending at 6.0 per cent and 9.0 per cent respectively from July 01.

The BAB’s request came following the decisions taken at a meeting of the association on June 20.
It was decided at the meeting that the deposit and lending rates would be kept within 6.0 per cent and 9.0 per cent respectively in line with the instruction of Prime Minister Shiekh Hasina.

“We’ve received a letter from the BAB in this connection,” a senior executive of a PCB told the BBN in Dhaka.

He also said his bank will submit the letter to its next board of directors meeting for implementation.

“After thorough discussions, BAB at the meeting on June 20 decided to keep lending and deposit rates within 6.0 per cent and 9.0 per cent respectively to help boost the country’s investment and create more jobs,” the BAB said in its letter.

“So you are requested to take necessary steps in this connection,” it added.

Earlier on April 16, the central bank of Bangladesh asked the banks to take effective measures to bring down the interest rate on lending to single digit from the existing level as soon as possible.

The advice was made at two separate meetings of senior bankers held at the central bank headquarters in Dhaka on the day with Bangladesh Bank (BB) governor Fazle Kabir in the chair.

The BB’s move came three days after the prime minister’s advice to the banks to bring down the lending rates to single digit to boost investments in the country.

“Interest rates have to be slashed and this should be in single digit. Or else, the investment will not accelerate along with the employment generation,” said Prime Minister Sheikh Hasina while receiving donations for her Relief and Welfare Fund from the Bangladesh Association of Banks (BAB) at her official residence Ganobhaban in the capital on April 13.