Dhaka, Feb. 9 -- In a strategic move to stimulate the interbank call money market, Bangladesh Bank has announced a reduction in the lower limit of its interest rate corridor.

The decision, aimed at discouraging commercial banks from keeping idle funds with the central bank, was detailed in a circular issued by the Monetary Policy Department on February 9, 2026.

According to the circular, the Standing Deposit Facility (SDF) rate which acts as the floor of the corridor has been slashed by 50 basis points, moving from 8 percent to 7.50 percent.

Bangladesh Bank buys another $196.5 million to stabilize forex market

The central bank observed that many commercial banks were opting to park their excess liquidity in the SDF rather than lending...