Investor Presentaiton
Per cent
-2.00
-2.50
-1.50
-0.50
-1.00
Sep-16
Nov-16
Jan-17
Mar-17
0.00
0.50
Independent Review of
RBD
Bangladesh's Development
Negative Real Interest Rate
on Bank Deposits
Excess liquidity in the banking system has led to a fall in the interest rates, which were
already quite low even prior to 2020.
The real deposit rate, calculated as the weighted average of the monthly deposit rate of all
scheduled banks adjusted with the point-to-point monthly consumer price index inflation,
fell from 0.03 per cent in March 2020 to -2.21 per cent in March 2022
The negative real interest rate on bank deposits means that value of the savings of
ordinary people was being depleted away during the pandemic and during high inflation-a
time when they needed to utilise their savings the most.
Figure: Real deposit rate in banks (in per cent)
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
May-18
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
-2.21
Jan-22
Mar-22
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