DHAKA — The central bank of Bangladesh has hiked the repo rate by 25 basis points (bps) to 5.75 percent in a bid to rein in inflation.

The Monetary Policy Committee of the Bangladesh Bank took the decision in its 56th meeting held Thursday in the capital Dhaka. The new rate will come into effect Oct. 2, reads a BB circular.

The bank earlier in June increased its policy rate (the repo rate) by 50 bps to 5.50 percent from 5.00 percent to deal with the demand-side pressures while ensuring the required flow of funds to the priority and production sectors to promote supply-side activities.

On May 29, the bank raised the key interest rate by 25 bps to 5 percent, the first increase in a decade. (Xinhua)