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IntelliNews - Asia Desk

Bangladesh Bank likely to hold policy rate at 9.5%

The move to a three-monthly cycle ends the central bank's long-standing practice of issuing monetary policy statements twice a year, and comes as policymakers try to revive weak private-sector borrowing without loosening their grip on consumer prices
Bangladesh Bank likely to hold policy rate at 9.5%
September 30, 2026

Bangladesh Bank will release the country's first quarterly Monetary Policy Statement on September 30, holding its policy rate unchanged at 9.50%, The Financial Express reported on September 30.

The move to a three-monthly cycle ends the central bank's long-standing practice of issuing monetary policy statements twice a year, and comes as policymakers try to revive weak private-sector borrowing without loosening their grip on consumer prices that still run above target.

The Monetary Policy Committee (MPC) decided at a meeting on September 23 to leave the rate untouched, pointing to volatile global energy prices, the recent rise in domestic fuel prices and the roll-out of the new public-sector pay scale.

The interest-rate corridor also stays in place. The Standing Lending Facility, the upper ceiling, remains at 11.0%, while the floor, the Standing Deposit Facility, holds at 7.50%.

Private-sector credit demand has stayed subdued even after the central bank trimmed the policy rate by 50 basis points in July, from 10% to 9.50%. That reduction was designed in part to encourage investment and lift lending to businesses.

Minutes of the latest MPC meeting show a more cautious posture. Headline inflation has been easing but still sits above the government's 7.50% target for FY27.

The committee said it would weigh the impact of domestic and external shocks on growth and prices before adjusting the policy rate again.

The central bank's monetary policy page now lists the July-December 2026 MPS among its published statements.

The shift to quarterly statements is expected to give more frequent readings on inflation, credit conditions and overall economic activity.

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