Bangladesh Bank has kept its policy interest rate unchanged at 9.5% as it assesses the potential impact of recent domestic and global economic shocks, including volatile energy prices and the latest fuel price hike.
The decision was taken at the 14th meeting of the Monetary Policy Committee (MPC) at the central bank’s head office in Dhaka on Wednesday, chaired by Bangladesh Bank Governor Mostaqur Rahman.
The MPC reviewed recent macroeconomic developments at home and abroad and noted that headline inflation has been trending downward. However, inflation remains above the government’s target ceiling of 7.5% for fiscal year 2026-27.
The committee identified several risks that could put renewed pressure on inflation. These include prolonged conflicts in the Middle East, which have contributed to volatility in global energy markets, as well as the recent increase in domestic fuel prices.
The proposed implementation of a new national pay scale could also create additional inflationary pressure, according to the MPC.
Against this backdrop, the central bank decided to maintain a cautious monetary policy stance rather than immediately adjust the policy rate. It will closely assess how domestic and international shocks affect economic activity before making any changes.
The MPC will particularly monitor the impact of these developments on gross domestic product (GDP) growth and consumer price inflation.
The meeting was attended by MPC members, including Deputy Governor Dr Habibur Rahman, economist Dr Mustafa Kamal Mujeri, BIDS Director General Dr AK Enamul Haque, Dhaka University Economics Department Chairperson Dr Firdousi Naher and MPD Executive Director Dr Imam Abu Sayed.
