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Floating interest rates will negatively impact investment flow, FBCCI warns

by Insider Desk
June 9, 2023

Floating interest rates could potentially impede investment flow into the market, according to the president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). 

Speaking at a roundtable on the proposed national budget for the 2023-24 fiscal year, Md Jashim Uddin highlighted the concerns surrounding the removal of the interest rate cap, which economists have suggested as a means to combat high inflation in domestic markets. 

Uddin stressed the importance of the government increasing funding for energy supply improvements, as industries are currently grappling with low gas pressure and frequent power outages. 

The roundtable, organized by the Economic Reporters’ Forum (ERF) in collaboration with Research and Policy Integration for Development (RAPID) and the Asia Foundation, took place at the ERF office in Dhaka. 

During the discussion, Planning Minister MA Mannan expressed the possibility of considering the withdrawal of the proposed Tk 2,000 against every Taxpayer Identification Number (TIN). 

The potential impact of floating interest rates on investment flow and the need for improved energy supply remain key concerns for stakeholders engaged in shaping the upcoming budget.

Tags: FBCCI
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