Dhaka, February 10, 2026 — Bangladesh Bank has decided to reduce the lower limit of the policy interest rate corridor in an effort to strengthen liquidity management and increase activity in the interbank money market.
In a press release issued today, the central bank noted that some banks have recently shown a growing tendency to deposit their excess liquidity with Bangladesh Bank under the Standing Deposit Facility (SDF), rather than lending funds in the interbank call money market or extending credit to the private sector.
According to Bangladesh Bank, this practice has been limiting the flow of liquidity in the financial system and slowing down the dynamism of the interbank money market.
To address the issue, the central bank, following the decision taken at the 11th meeting of the Monetary Policy Committee, has revised the SDF rate downward from 8.00 percent to 7.50 percent, reducing it by 50 basis points.
Bangladesh Bank stated that the move is intended to encourage banks to channel surplus funds into the interbank market and productive lending, instead of keeping them parked at the central bank.
Meanwhile, the upper limit of the interest rate corridor — the Standing Lending Facility (SLF) — will remain unchanged at 11.50 percent, while the overnight repo policy rate will also stay steady at 10.00 percent.
The revised policy corridor is expected to enhance liquidity circulation, improve market-based interest rate adjustments, and support greater stability in short-term funding conditions.
The new SDF rate will come into effect from February 15, 2026, the central bank added.
