BB holds policy rate at 9.5% as inflation, growth risks persist

Bangladesh Bank’s Monetary Policy Committee (MPC) has decided to keep the policy rate unchanged, saying it will monitor the impact of domestic and global shocks on inflation and economic growth before making further adjustments.
The decision was taken at the MPC’s 14th meeting, chaired by Bangladesh Bank Governor Mostaqur Rahman at the central bank’s head office on Wednesday.
The committee noted that headline inflation has been trending down but remains above the government’s 7.50% ceiling for current 2026-27 fiscal year. 
It said further assessment was needed to determine whether the recent decline in inflation could be sustained amid renewed cost pressures.
Volatility in international energy markets was identified as a key risk. 
The MPC noted that energy prices remain uncertain amid the prolonged conflict in the Middle East. 
Bangladesh also raised domestic fuel prices in late September, while implementation of the new pay scale could boost domestic demand and add to cost pressures.
Against this backdrop, the MPC decided to assess the impact of these domestic and external developments on GDP growth and consumer price inflation before changing the policy rate. 

Bangladesh Bank’s monetary stance remains relatively tight. The repo rate was re-fixed at 9.50% effective 2 August 2026, while the Standing Lending Facility rate was set at 11%. The Standing Deposit Facility rate remains at 7.50%.
The central bank’s Monetary Policy Statement for July-December 2026 identifies price stability and economic recovery as key policy objectives. 
It said headline inflation had fallen from a peak of 11.7% in July 2024 to 9.4% in May 2026, although the disinflation process has been accompanied by weaker economic activity.
The meeting was attended by MPC members Dr Md Habibur Rahman, deputy governor of Bangladesh Bank; economist Dr Mustafa Kamal Mujeri; Dr AK Enamul Haque, director general of the Bangladesh Institute of Development Studies; Dr Firdousi Naher, chairperson of the Department of Economics at the University of Dhaka; and Dr Imam Abu Sayed, executive director in charge of the Monetary Policy Department.
Dr Mohammad Monirul Islam Sarkar, member secretary of the MPC and director of the Monetary Policy Department, also attended.