Dhaka, July 15 -- In a major policy change, Bangladesh Bank (BB) cut the SDF (standing deposit facility) by 50 basis points to 8.0 per cent to revitalise the faltering call-money market.

The Monetary Policy Department (MPD) of the central bank issued a circular in this regard. The latest change in the SDF will be effective from July 16, 2025. Currently, the interest rate in SDF is 8.50 per cent.

BB's Executive Director (Grade-1) Dr Md Ezazul Islam said the central bank took the decision to discourage the growing use of SDF instruments by the commercial banks having surplus funds and vibrate the call money market further.

The move comes a day after a report published by The Financial Express titled "Call money market falters amid trust ...