In a move to boost the dynamics of the interbank money market, Bangladesh Bank has reduced the Standing Deposit Facility (SDF) rate, also known as the reverse repo rate, by 50 basis points to 8%, effective from 15 July 2025.
The central bank’s decision, announced through a circular issued by its Monetary Policy Department, only adjusted the lower bound of the Interest Rate Corridor (IRC) framework by bringing the SDF rate down from 8.50% to 8.00%.
Despite this change, Bangladesh Bank has decided to keep the policy rate or overnight repo rate unchanged at 10%, as well as the upper bound of the Interest Rate Corridor, the Standing Lending Facility (SLF) which remains at 11.5%.
This revision aims to enhance liquidity management and foster a more active call money market, improving overall market conditions.
