Bangladesh has creditably maintained the lowest economic volatility among South Asian nations, with sustaining 6 per cent plus GDP (Gross Domestic Product) growth over the past decade, according to a key-note presentation of Bangladesh Bank Governor Dr Atiur Rahman. Growth volatility refers to the amount of uncertainty or risk about the size of changes in a country’s annual rate of GDP growth, report BSS. The governor presented the paper on “Business and Investment Opportunities in the Bangladesh: Economy in Robust Growth Spell” at a seminar organised by Habib B...

Further cut in interest rates on bank deposits with lending rates remaining unchanged widened the spread in November last. Senior bankers dropped an idea that the interest rates on deposits might fall further in the coming months if the ongoing political uncertainty continued. The weighted average rates on deposits came down to 7.32 per cent in November last from 7.40 per cent in the previous month while interest rates on lending remained unchanged at 12.49 per cent, according to the central bank statistics, reports the Financial Express (FE). “We want to red...

The central bank has launched a weekly Islamic bond issuance programme, providing local lenders with a new short- term liquidity management tool and boosting the prospects of Islamic finance in the majority-Muslim country. Bangladesh has developed a sizeable Islamic finance industry but a lack of sharia-compliant instruments such as sukuk threatens to limit further growth of the sector. The central bank has had a sukuk programme since 2004 which has sold six-month paper, but more frequent issuance and a wider range of tenors are increasingly needed for an indust...