Bangladesh Bank governor hints market-based interest, exchange rates

Market-based interest rates and exchange rates are likely to be introduced soon in Bangladesh, hinted Bangladesh Bank Governor Abdur Rouf Talukder.

"We are very close to the market-based interest rate. We will be moving very shortly into a market-based interest rate," Bangladeshi newspaper Dhaka Tribune reported Monday, citing the governor.

The governor made the remarks in a session titled "Fiscal and Monetary Policies in the Evolving Economic Order (Risks, Vulnerabilities and Solutions)" held in Dhaka. He added that the country would soon move to a market-determined exchange rate as well.

The governor also said that banks would be at liberty to fix the interest rate on a supply-demand basis.