Bangladesh Bank has held its key policy repo rate steady at 10 percent for the first half of the current fiscal year, reaffirming its commitment to a tight monetary stance aimed at curbing persistent inflation, weak private investment, and growing uncertainty over global trade.
The central bank should adopt a more supportive stance, the chamber says
The move was announced in BB’s latest monetary policy statement for the first half of FY26
The banking regulator unveils monetary policy statement for July-December 2025
The target has been revised down due to a lack of appetite among borrowers
BB said the 10 percent policy rate would remain in place for the July-December period
A high-powered panel of the Bangladesh Bank (BB) decided to maintain the policy rate at 10 percent until the inflation comes down to a desired level and also spoke about moving away from the crawling peg and letting market forces determine the US dollar exchange rate.
Bangladesh Bank Governor Ahsan H Mansur said tightening monetary policy is the only globally practised remedy to heal inflationary pain, as businessmen opposed interest rate hikes for obstructing business expansion and job creation.
Inflationary pressure is being felt severely in the face of wage growth declines.
Bangladesh Bank has held its key policy repo rate steady at 10 percent for the first half of the current fiscal year, reaffirming its commitment to a tight monetary stance aimed at curbing persistent inflation, weak private investment, and growing uncertainty over global trade.
The central bank should adopt a more supportive stance, the chamber says
The move was announced in BB’s latest monetary policy statement for the first half of FY26
The banking regulator unveils monetary policy statement for July-December 2025
The target has been revised down due to a lack of appetite among borrowers
BB said the 10 percent policy rate would remain in place for the July-December period
A high-powered panel of the Bangladesh Bank (BB) decided to maintain the policy rate at 10 percent until the inflation comes down to a desired level and also spoke about moving away from the crawling peg and letting market forces determine the US dollar exchange rate.
Bangladesh Bank Governor Ahsan H Mansur said tightening monetary policy is the only globally practised remedy to heal inflationary pain, as businessmen opposed interest rate hikes for obstructing business expansion and job creation.
Inflationary pressure is being felt severely in the face of wage growth declines.
The target for January-June was 10%
