Dhaka, June 17 -- Bangladesh Bank is set to discontinue the 14-day repo facility from July, limiting liquidity support for commercial banks to just the 7-day term.

Currently, auctions are held for both tenors, but from next month, the central bank will run only the 7-day repo auction.

The 28-day repo was already scrapped on Apr 10.

The 14-day facility was meant to be withdrawn this month but has now been deferred by a month, according to Bangladesh Bank spokesperson Arief Hossain Khan.

"The governor has issued a directive to discontinue the 14-day repo facility," he told bdnews24.com on Monday.

Banks borrow from the central bank through repos when short on liquidity, with rates set under repurchase agreements.

Excess funds are place...