BB keeps policy rate at 9.5% in first quarterly monetary policy

photo: collected

Bangladesh Bank has kept its policy rate unchanged at 9.5% for the October-December quarter, shifting to a quarterly monetary policy cycle for the first time, reports Daily Sun.

The central bank announced the decision on Wednesday, saying inflation eased to 8.26% in August from 9.16% in June, although risks remain amid persistent supply and cost pressures.

Bangladesh Bank cited volatile global energy prices stemming from the prolonged conflict in the Middle East and disruptions in the Strait of Hormuz, higher administered fuel prices and the potential impact of the new national pay scale as key inflationary risks.

At the same time, economic activity remains subdued, reflected in sluggish industrial production, slow private-sector credit growth and a depressed Purchasing Managers’ Index (PMI), the central bank said.

The Standing Lending Facility (SLF) rate was also kept unchanged at 11%, while the Standing Deposit Facility (SDF) remained at 7.50%.

The latest decision marks the beginning of Bangladesh Bank’s quarterly monetary policy cycle, replacing the previous system of announcing monetary policy twice a year.