Bangladesh, Sept. 21 -- The latest US Federal Reserve rate hike has heightened concerns about financing costs and the profitability of local listed companies with substantial foreign-currency debt, particularly those exposed to floating-rate dollar credit.

Advertisement The Federal Reserve raised its policy rate by 25 basis points to 3.75-4 per cent from 3.5-3.75 per cent on Wednesday for the first time in three years to tame inflation back to 2 per cent.

For Bangladeshi companies with floating-rate foreign loans, the increase can eventually translate into a higher interest burden, as borrowing rates are linked to international benchmarks such as the Secured Overnight Financing Rate (SOFR).

Dr Fahmida Khatun, distinguished fellow at t...