In March Bangladesh Bank (BB, the central bank) raised its main policy rates by 50 basis points each in a bid to dampen domestic credit growth and contain rising inflation. BB increased the repurchase (repo) rate to 6%, while the reverse repo rate was raised to 4%, compared with 3.5% previously. The central bank said that its decision was in line with other central banks in the region, many of which have started to tighten monetary policy in the last year or so amid strengthening domestic demand and broader concerns over rising inflationary pressures. Domestic credit expanded by an average of 24.4% year on year in 2010 and by 26.2% in January. BB's decision to raise the repo rate follows its decision in March to withdraw a mandatory cap on the lending rate, which was set at 13%.