Finance Minister AMA Muhith on Thursday said that a 9% lending rate and 6% deposit rate will be effective from August 9.
Muhith also claimed that there is no liquidity crises in the country right now.
The senior minister made the announcement after a scheduled meeting with bank chairpersons and managing directors.
“Prime Minister has directed the implementation of a 9% lending rate and 6% deposit rate. But this will be effective from August 9 and the interest rate of credit cards and consumers loans will not be included in this,” said Muhith.
“Already about 50% banks have implemented the new rate in deposit and lending. Banks’ chairpersons and MDs have pledged to implement this,” he said.
Talking about the liquidity status of the banking sector, the minister said there is no liquidity crisis in the market.
“There are plenty of funds are available. This is because of the government decision to allow its institutions to deposit 50% funds in private banks,” said Muhith.
On June 20, Bangladesh Association of Banks (BAB), a platform of bank owners, decided to bring down lending rate to single digit. The platform declared to set the lending rate at 9% and deposit rate at 6%. The new rate was supposed to be effective from July 1.
The push for single digit interest rates followed a demand by the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) to ensure low cost funds for the expansion of businesses.
