Bangladesh Bank keeps policy rate unchanged, lowers credit growth target

Bangladesh Bank has announced the monetary policy statement (MPS) for the first half (July-December) of the 2026-27 fiscal year, keeping the policy rate unchanged while lowering the private sector credit growth target.

Governor Md Mostaqur Rahman unveiled the new monetary policy on Tuesday, June 30. Deputy Governor Dr Habibur Rahman detailed the policy's provisions.

The central bank aims to balance inflation control and desired growth. The policy rate repo has been kept at 10 per cent, unchanged since October 2024.

The private sector credit growth target has been reduced to 6.8 per cent by December, down from the previous target of 8 per cent set for June 2026, as actual growth dropped to 5 per cent in May.

The inflation target for the new fiscal year has been set at 7.5 per cent, aligning with the government's goal, despite current inflation standing at 9.42 per cent.

The interbank lending rate (SLF) remains at 11.50 per cent, while the deposit rate (SDF) has been adjusted to 7.5 per cent. Domestic credit growth has been targeted at 10.5 per cent.