NBFI deposit rates surge to 12.11%, lending rates to 15%
Non-bank financial institutions (NBFIs) can now offer deposit interest rates as high as 12.11%, a significant increase compared to most of the banks' 8.5-9%.
This adjustment follows a circular issued by the central bank on Tuesday (5 March), stipulating that the maximum interest rate on NBFI deposits will be SMART plus 2.5%, and for lending, the ceiling will be SMART plus 5.50%.
As SMART currently stands at 9.61%, the highest deposit rate will exceed 12% while lending rates will be over 15%.
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The Bangladesh Bank has confirmed that these new rates will apply to new deposits and loan disbursements, and will take effect immediately.
A senior official of the central bank said besides reducing the supply of money to curb high inflation in the country, Bangladesh Bank has increased all types of policy interest rates.
"As a result, the deposit interest and loan interest rates are increasing. Besides, the amount of interest margin has also been increased. As a result, Bangladesh Bank hopes that the supply of money will decrease and inflation will come down," he added.
