Dhaka, Feb. 6 -- Credit flow to private sector ebbs further as higher lending rates and ongoing business uncertainty dampens demand for funds, according to bankers.

The growth in credit flow to private sector came down to 7.28 per cent in December 2024 on a year-on-year basis from 7.66 per cent a month before, according to the central bank's latest statistics, released Thursday.

It was 2.52-percentage-point lower than the Bangladesh Bank (BB) target of 9.80 per cent for the first half (H1) of the current fiscal year (FY) 2024-25.

"Higher interest rates on lending, ongoing political uncertainty and an unfavorable business environment have reduced the demand for fresh credits in recent months," a senior executive of a leading private com...