# 10-year interest rate bonds is now 15.80 pc
# 15-year interest rate bonds rises to 15.20 pc
# 20-year interest rate bonds was 15.80 pc
Many institutions and individuals have increased their investment in treasury bills and bonds in the hope of higher interest rates. The interest rate on 10-year bonds is now up to 15.80 percent, which is the highest in 17 years. Due to being a relatively safe investment, the amount of investment in bonds is increasing gradually.
Meanwhile, due to rising interest rates, banks are more interested in investing in bills and bonds than lending to the private sector. Because investing in government securities is safe.
According to Bangladesh Bank data, the interest rate on 10-year bonds increased to 15.80 percent on June 20 this year. The government has taken Tk 6,270 crore in this interest. However, the entire loan could not be taken at the same interest rate. In this case, interest has been calculated from 12.54 percent to 15.80 percent. But in December last year, the interest rate of this 10-year bond was 10.46 percent.
Meanwhile, the interest rate on 15-year bonds was 15.20 percent and the interest rate on 20-year bonds was up to 15.80 percent.
It was known that in 2007, the interest rate on bonds exceeded 15 percent. Since then, it has decreased. However, Bangladesh Bank is now following the path of contractionary monetary policy with controlling inflation as its main priority. On the one hand, efforts are being made to return people's money to the bank by increasing interest rates; on the other hand, efforts are being made to control the demand by increasing the cost. As a result, private sector investment is being transferred to bonds.
According to central bank, the current interest rate of two-year treasury bonds is 12.14 percent, five-year bonds 12.30 to 15.30 percent, 10-year bonds 12.54 to 15.80 percent, 15-year bonds 12.60 to 15.20 percent and 20-year bonds 12.59 to 15.50 percent.
Nurul Amin, former chairman of the Association of Bankers, Bangladesh (ABB), said Bangladesh Bank has not been giving any kind of loan to the government for a long time. For this, banks are increasing the interest rate as per the demand for the purchase of government bills and bonds.
He also said that now investors in urban areas have started investing in bills and bonds instead of keeping money in banks. If the government pays attention to bills and bonds without increasing revenue collection, the rate of investment of common people in this sector will increase. It can also affect bank deposits. However, the former banker also thinks that such an environment has not been created so far.
The government has adopted a contractionary policy since last year to control high inflation in the country. Since then, the interest rate of bank loans has been increasing. Interest rates on treasury bills and bonds are also increasing by leaps and bounds. But the purpose for which the central bank has taken these initiatives, that purpose has not yet been fulfilled. On the contrary, inflation is increasing day by day.
Bankers said there is a liquidity crisis in the banking sector. Some Islamic banks have been suffering from liquidity crisis for more than a year. This has had an impact on the overall banking sector. In addition, banks are currently in a cautious position in lending.
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