The Bangladesh Bank has further reduced the number of its repo auctions for banks to one day per week in a bid to improve the implementation of the monetary policy.

The new measure will come into effect from November 1, the central bank said in a circular issued yesterday.

The Bangladesh Bank had cut the number of its repo auctions to two days a week from the previously daily basis to meet a condition for a $4.7 billion loan from the International Monetary Fund.

Husne Ara Shikha, executive director and spokesperson of the central bank, said the repo auctions have been reduced for better implementation of the monetary policy.

As per the decision, the Bangladesh Bank will now lend to banks against government securities for tenures of seven days, 14 days and 28 days.

"This will enable the banks to plan well," she added.

Under the repo auction, banks can borrow from the central bank against government securities with the condition that they will buy the instruments back at a specific date, usually for higher prices. By doing so, the banks can avail funds and meet their liquidity requirements.