Economy
2 months ago

Bangladesh Bank to announce monetary policy on Monday

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Bangladesh Bank has said it will announce the monetary policy for the new year on Monday.

In a statement issued on Sunday, the central bank said Governor Ahsan H Mansur will unveil the policy at 3:30pm.

Bangladesh Bank announces its monetary policy every six months.

The upcoming policy will cover the period from January to June this year.

Monetary policy sets out how much money will be supplied to the economy and the interest rate framework used to manage inflation and support the government’s broader economic plan.

Officials said the policy is being prepared in line with the existing strategy, with inflation control remaining the central priority.

The announcement comes as the International Monetary Fund has advised Bangladesh not to reduce the policy interest rate until inflation falls below 7 percent.

Against this backdrop, Bangladesh Bank is expected to maintain its current stance for the next six months.

The central bank has been following a contractionary monetary policy since late 2024.

In the previous policy statement, the policy interest rate was kept at 10 percent.

The standing lending facility (SLF) rate was set at 11.5 percent, while the standing deposit facility (SDF) stood at 8 percent.

Inflation surged after the taka began to weaken against the US dollar, nearing double-digit territory in September 2022.

Inflation stood at 9.52 percent that month, up from 7.56 percent that August.

Bangladesh Bank started raising the policy interest rate from late 2022 to curb price pressures.

Despite the tightening, inflation remained elevated for an extended period, peaking at 11.66 percent in July 2024.

Following the fall of the Awami League government on Aug 5, 2024, in the face of a mass movement, the interim government continued its contractionary policy stance.

As a result, inflation began to ease from August 2024, falling to 10.49 percent.

The overall inflation rate has declined further to 8.49 percent in December, but was up slightly compared with 8.29 percent in November.

A year earlier, in December 2025, inflation had stood at 10.89 percent.

 

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