(Bloomberg) -- Bangladesh’s central bank delivered its second interest rate hike, raising borrowing cost by a quarter point to tame prices and curb exchange rate pressure. 

The overnight repo rate has been raised to 5.75% from 5.50%, Bangladesh Bank said in a notice on its website Thursday. The reverse repo rate will remain unchanged at 4% and the new rate change will be effective from Oct. 2, it said. 

The move comes amid mounting inflationary concerns and a falling currency due to costlier imports that has also lead to declining foreign-exchange reserves. Consumer prices eased to 7.48% in July, after hitting a nine-year high the previous month. 

Authorities are extending “necessary policy measures to contain demand while supporting supply and production-enhancing activities” in tackling the ongoing challenges, Bangladesh Bank said in a report published Wednesday.  

The rate decision follows the central bank raising interest rates on short-term trade financing, giving borrowers and importers wider scope to secure foreign funds. 

Bangladesh’s forex stockpile declined to $36.4 billion as of Sept. 28 from $46.3 billion a year earlier, enough to cover roughly four months of imports. Its government is seeking assistance from multilateral lenders to create buffers for the economy.

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