Bangladesh Bank holds policy rate at 9.5% for Q4



Bangladesh Bank holds policy rate at 9.5% for Q4

Bangladesh Bank has kept its policy rate unchanged at 9.5 per cent for the October-December 2026 period while issuing the country’s first monetary policy on a quarterly basis, moving away from its earlier six-month cycle.

The bank said inflation eased to 8.26 per cent in August 2026 from 9.16 per cent in June, but underlying risks remained alongside subdued activity, according to local media reports.

Bangladesh Bank kept the policy rate at 9.5 per cent for October-December, in its first quarterly monetary policy.
It moved from a six-month cycle as inflation eased to 8.26 per cent in August from 9.16 per cent in June.
For apparel and textile firms, the unchanged stance keeps bank-funding signals steady amid weak industry and credit data.
SLF stays at 11 per cent and SDF at 7.50 per cent.

The central bank attributed its cautious stance to inflation’s exposure to supply and cost pressures, citing high and volatile global energy prices linked to the prolonged Middle East conflict and disruptions in the Strait of Hormuz, the recent upward revision in administered fuel prices, and the possible impact of national pay scale implementation.

The bank also pointed to stress in economic growth, referring to weak industrial production, slow private sector credit expansion and a depressed Purchasing Managers’ Index. It described the policy task as supporting activity without undermining disinflation, and said the Monetary Policy Committee would monitor global and domestic macro-financial developments and adjust the monetary stance as needed.

The central bank also kept the Standing Lending Facility, the overnight borrowing rate for commercial banks from the central bank, at 11 per cent. The Standing Deposit Facility, under which commercial banks can place excess overnight funds with the central bank, was maintained at 7.50 per cent.

Fibre2Fashion News Desk (SG)



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