In recent days banks are offering a very high interest rate what could be the possible reasons and the impact in the economy for such a high rate? Why the interest of Bangladesh is high being a much weaker economy? What is the explanation for this phenomenon? More generally, what are the main driving forces of long-term interest rates? Is there a role for foreign official purchases of government bonds? And, if so, can the impact of foreign capital flows on long-term rates be precisely quantified?