Dhaka, July 15 -- Bangladesh Bank has reduced its Standing Deposit Facility (SDF) rate, also known as the policy rate (reverse repo rate), by 50 basis points.

This move, announced through a circular issued on Tuesday, brings the SDF rate down from 8.50 percent to 8.00 percent, effective from tomorrow, July 16. The central bank's decision signals a gradual shift away from its contractionary monetary policy stance.

According to Bangladesh Bank, this measure is aimed at further activating the interbank money market (call money market) and strengthening liquidity management within the existing monetary policy framework.

However, the upper limit of the policy interest rates, including the Standing Lending Facility (SLF) rate at 11.50 percen...