Dhaka, March 8 -- Realtors are now blaming the rising bank lending rates for a slowdown in their business, as higher rates are weighing down sales despite people's huge unmet demand for houses, industry sources say.

Lending rates have now spiked to around 13 per cent in an almost 100- percent rise from the mark that was before July 2023.

According to people familiar with such developments, the lending rates of banks and financial institutions have bucked up significantly since July 2023 under a new interest regime introduced pursuant to reforms stipulated in an IMF loan-package deal.

The new benchmark rate, styled SMART, or six months moving average rate of treasury, determine both lending and deposit rates after withdrawal of rate cap...