Published : 01 Oct 2026, 01:15 AM
Updated : 01 Oct 2026, 01:15 AM
Bangladesh Bank sees a fresh inflation risk from two fronts -- higher fuel prices and possible pay rises for civil servants.
The central bank warns that together they could push up transport and production costs and add to already stubborn price pressures.
The warnings were outlined on Wednesday during a media briefing at the bank, where official policy for the October-December quarter was announced.
Deputy Governor Habibur Rahman presented the key targets and framework of the quarterly monetary policy statement.
In a departure from routine practice, Governor Mostaqur Rahman was absent from the briefing and did not field questions from reporters. This marks the second monetary policy framework issued during his tenure since taking office in February.
The government maintains a target to curb inflation to 7.5 percent by the close of the current fiscal year.
To help tame persistent price pressures, Bangladesh Bank elected to hold its key policy rate (repo rate) unchanged at 9.5 percent, citing ongoing domestic and external economic volatility.
The Standing Lending Facility (SLF) rate -- the cost of short-term borrowing for commercial banks from the central bank -- remains at 11 percent.
Similarly, the lower bound of the interest rate corridor, the Standing Deposit Facility (SDF) rate for bank deposits held with the central bank, has been kept at 7.5 percent.
