Market digest

BB re-fixes interest rate at 8pc in agri, rural credit

Staff Correspondent

23 April, 2021 12:00 AM printer

Bangladesh Bank (BB) has re-fixed interest rate at 8 percent instead of 9 percent on agriculture and rural credit.

Banking regulation and policy department of the central bank on Thursday issued the notification to encourage farmers for producing more agriculture items.

“Agriculture is an important sector of Bangladesh economy. The food security and nutrition of huge population of the country depend on extensive agricultural production. It is giving priority to agricultural development for the purpose of poverty alleviation and job creation,” the BB circular stated.

Besides, the normal economic activities of the country are being disrupted due to the outbreak of Covid-19 in Bangladesh since 2020, the circular stated.

In this context the central bank asked all the scheduled banks to ensure agriculture and rural credit at the reduced interest rate. The reduced interest rate will be effective from April 1, 2021.