Call money rate hits 11-year high at 9.13%

According to Bangladesh Bank data, banks borrowed Tk 3,187.42 million from the overnight money market on Wednesday.

This demand has pushed weighted average interest rates to an incredible 9.13%, the highest level since 2013. For comparison, the average overnight interest rate for all of 2012 was 12.82%.

Rising overnight interest rates are having a negative impact on banks' profits, and rising borrowing costs are reducing interest margins.