Bangladesh Bank has decided to keep its policy interest rate unchanged despite ongoing economic and market pressures.
The decision is expected to provide some relief to consumers, entrepreneurs and businesses as borrowing costs and interest rates are unlikely to rise for the time being. The move could also support ongoing business activities and new investment plans.
The decision was taken at the 14th meeting of the Monetary Policy Committee (MPC), held at Bangladesh Bank headquarters on Wednesday (September 23) under the chairmanship of Governor Md Mostaqur Rahman.
The MPC reviewed the latest macroeconomic situation and observed that although overall inflation was showing a downward trend, it remained above the government’s target of 7.50% for the 2026-27 fiscal year. Against this backdrop, the committee decided to maintain the existing policy rate.
The meeting also noted that prolonged conflict in the Middle East has created volatility in the global energy market. Rising fuel prices in Bangladesh and the implementation of a new pay scale could further increase inflationary pressure.
The MPC will make its next decision on the policy rate after monitoring the impact of these factors, particularly developments in gross domestic product (GDP) growth and consumer price index (CPI)-based inflation.
Bangladesh Bank had lowered the policy rate in July before keeping it unchanged this time.
Deputy Governor Dr Md Habibur Rahman, economist Dr Mustafa K Mujeri, BIDS Director General Dr A K Enamul Haque, Dhaka University Economics Department Chairperson Dr Ferdousi Nahar, along with other MPC members and senior central bank officials, attended the meeting.
-MT