Industry Desk: The Bangladesh Bank has raised the interest rate on loans disbursed under the Export Development Fund (EDF) from the reserves by 1%, making the foreign currency borrowing even costlier.

The new rate will come into effect from 13 November, according to a notice issued by the central bank’s Foreign Exchange Policy Division yesterday.

With the rate hike, Authorized Dealers (Ads) will have to pay 2.50% interest to get EDF loans while they will provide such loans to manufacturers and exporters at the interest of 4%.

Generally, the central bank increases the interest rate if it wants to check the money flow in the economy.