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Published : 30 Jun 2026, 04:43 PM
Bangladesh Bank has announced its monetary policy for the July-December period, keeping the policy rate at 10 percent as before as it aims to increase credit flow to the private sector in addition to controlling inflation.
Governor Mostaqur Rahman announced the policy for the first half of the new fiscal year at a press conference at the central bank on Tuesday.
Afterwards, Deputy Governor Habibur Rahman highlighted different targets in the policy.
In a power point presentation, he said Bangladesh Bank is maintaining its “contractionary trend”.
Similarly, other interest rates such as the Standing Lending Facility (SLF) rate will remain at 11.5 percent, while the Standing Deposit Facility (SDF) stays at 7.5 percent.
Habibur said, “The budget has set the GDP growth target at 6.5 percent. To achieve this goal, inflation must also be brought down to at least 6.5 percent.”
This is the first monetary policy announced by the central bank since Mostaqur took over as governor. The central bank is now devising a liquidity control strategy to create a supportive economic environment for the government to achieve its goals.
The monetary policy contains a possible guide to how much money will be supplied to the market at a particular time of the year to implement the government’s fiscal policy.
Bangladesh Bank announces its monetary policy every six months.
The last monetary policy announcement last February was also contractionary in nature, with the policy interest rate kept at 10 percent.
The central bank started raising the policy interest rate from the end of 2022 in an attempt to curb inflation.
Despite this inflation rose to double digits in 2024, peaking at a record 11.66 percent in July that year.
The student movement that began that month eventually ousted the Awami League government on Aug 5.
After the interim government took office, a full-scale contractionary monetary policy was adopted. Inflation also began to decline. However, it largely remained above 9 percent.
