Business Desk :
Finance Minister AHM Mustafa Kamal on Wednesday said the interest rate on savings certificates may be raised again if necessary.
“Increasing or decreasing the rate of interest is an ongoing process. It will sometimes increase, sometimes decline. If necessary, it may be increased again,” he said while talking to the media after a meeting with the cabinet committee on government procurement.
He said that the interest rate of marginalised investors has been taken into consideration even though the rates on savings certificates has been reduced.
The minister also noted that the previous rates of interest on saving certificates had attracted excessive investors.
“The rate of interest on savings certificates is relatively high. That’s why everyone has come [invested] here. The other driving forces of the economy are in trouble [because of this],” he said.
AHM Mustafa Kamal further said the decrease in the interest rate will not discourage the public from investing in savings certificates.
Earlier on Tuesday, the government cut interest rates on all types of savings certificates – after around six years – with an aim to divert large investments to industries and the capital market.
Under the new rates, for savings instruments amounting to over Tk15 lakh with a five-year tenure, investors will get as much as 10.75% in profit-down by 1 percentage point-according to a circular issued by the Internal Resource Division of the finance ministry on Tuesday.
An investment over Tk30 lakh will yield the highest, 9.75% — two percentage points lower than the existing rate.
In 2015, the highest interest rate on savings certificates was slashed by two percentage points to 11.76% from 13%.
The new interest rates have been cut to minimise the government’s interest liability and discourage people from buying savings certificates, said Suraiya Pervin Shelley, joint secretary (Savings) at the Internal Resources Division.
