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Bangladesh Bank (BB) has decided to keep its key policy interest rate unchanged as the central bank’s Monetary Policy Committee (MPC) opted to assess the impact of domestic and global shocks on inflation and economic growth before making any further adjustment.
The decision was taken at the 14th MPC meeting held today at Bangladesh Bank headquarters in the city, chaired by Governor Md Mostaqur Rahman FCMA.
According to the minutes of the meeting, the MPC reviewed recent domestic and global macroeconomic developments and observed a downward trend in headline inflation, although it remains above the government’s 7.50 percent target ceiling for FY27.
Against this backdrop, the MPC decided to maintain the existing policy rate for the time being rather than make another immediate adjustment.
The committee also noted that international energy prices remain volatile due to the prolonged conflict in the Middle East. At the same time, the government’s upward revision of fuel prices in late September 2026, along with the implementation of a new pay scale, could create additional inflationary pressures.
The MPC therefore decided to closely monitor the effects of these domestic and international developments on the economy, particularly GDP growth and consumer price inflation (CPI), before considering any change in the current policy rate.
The latest decision means Bangladesh Bank is maintaining a cautious approach following its July rate cut, balancing the need to contain inflation with the need to support economic activity.
The MPC meeting was attended by Deputy Governor Dr Md Habibur Rahman, economist Dr Mustafa K Mujeri, BIDS Director General Dr A K Enamul Haque, University of Dhaka Economics Department Chairperson Dr Ferdousi Naher, Executive Director Dr Imam Abu Sayeed and other senior officials.
