The Bangladesh Bank has announced an increase in the lending rate for April, exceeding 14% for the first time. This rise is attributed to a higher Six-month Moving Average Rate of the Treasury Bill (SMART) set at 10.55% for April. Banks are allowed to add an additional 3.5% on top of this rate, pushing the maximum lending rate above 14%. This is a significant jump from the 13.11% rate observed in March.
The SMART rate is a new lending rate formula implemented by the Bangladesh Bank to address the recent surge in interest rates.