Bangladesh Bank holds a meeting today with finance ministry officials to discuss a recent directive by the ministry to contain banks’ interest rate spread.

The finance ministry in a letter gave the direction to the BB on January 3 asking it to decrease the existing high interest rate spread, the gap between the interest rates on credit and deposit rates.

A BB official told New Age on Tuesday that a BB team led by deputy governor Md Abul Quasem would hold the meeting with the finance ministry officials in which the central bank would inform its recent measures that it took earlier in this regard.

The finance ministry letter also said that the BB should take steps cautiously to achieve the target of monetary policy.

The ministry also mentioned that the BB should keep importance on increasing the credit flow to the productive sector specially to small and medium enterprises.