Dhaka: Bangladesh Bank (BB) today announced a reduction in its key policy (repo) rate by 50 basis points, bringing it down to 9.50 percent. This strategic move is intended to bolster economic growth, stimulate private sector investment, and enhance credit flow.
According to Bangladesh Sangbad Sangstha, the decision was reached during the 13th meeting of the Monetary Policy Committee (MPC), presided over by Bangladesh Bank Governor Md Mostaqur Rahman. The updated monetary policy framework includes lowering the repo rate from 10 percent to 9.50 percent and reducing the Standing Lending Facility (SLF) rate from 11.50 percent to 11.00 percent. Notably, the Standing Deposit Facility (SDF) rate remains steady at 7.50 percent.
The MPC emphasized that the decision was based on a thorough evaluation of both domestic and global macroeconomic conditions, factoring in inflation trends and other critical economic indicators. The committee anticipates that the rate reduction will invigorate domestic investment, expand credit flow to the private sector, and facilitate job creation. Additionally, the MPC will maintain vigilance over the country's balance of payments situation.
This meeting marked the first MPC session for the 2026-27 fiscal year and took place at the Bangladesh Bank boardroom. The session was attended by Deputy Governor Dr Md Habibur Rahman, Executive Director of the Institute for Inclusive Finance and Development (InM) Dr Mustafa K Mujeri, Director General of the Bangladesh Institute of Development Studies (BIDS) Dr A K Enamul Haque, Chairman of the Department of Economics at the University of Dhaka Dr Ferdousi Nahar, Bangladesh Bank Chief Economist Dr Mohammad Akhtar Hossain, and Executive Director Dr Imam Abu Sayeed.
The newly revised policy rates are set to be implemented from August 2, 2026.