Dhaka, Oct. 17 -- When interest rates fall, demand for loans increases, boosting credit flow to the private sector and revitalizing economic activity. Conversely, high interest rates raise production costs, undermining competitiveness in both domestic and international markets.

Lower interest rates reduce production costs, allowing firms to strengthen their market positions. New investments spur the creation of new industries and businesses or the expansion of existing ones, generating large-scale employment opportunities.

Small and medium enterprises (SMEs), in particular, can expand rapidly and create jobs if they have access to low-interest loans. However, during periods of high inflation, there is little scope to lower interest rate...