BB comes forth with elixir for stock market

Bangladesh Bank has lowered the interest rate for banks to invest in the stock market under its special fund for capital market investment.

According to a circular issued by the Central Bank on Thursday, banks can borrow money from the central bank's special fund at 4.75% interest rate to invest in stocks, down by 25 basis points from the earlier 5%.

Bangladesh Bank revised down the interest rate aligning it with the repo rate that has been cut in the latest monetary policy for the current fiscal year from 5.25% to 4.75%.

Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.