Staff Correspondent:

Bangladesh Bank has projected that private sector credit growth will be 7.2 percent for the next six months, down from the previous target of 9.8 percent, reflecting the contractionary nature of monetary policy aimed at containing persistently high inflation.

The central bank said it had reduced the private sector credit growth target due to a lack of appetite among businesses to borrow.

Private credit grew by only 6.4 percent in June, well below the target of 9.8 percent and the lowest recorded in recent years, according to BB data.

According to the monetary policy statement for July to December 2025, public sector credit growth is projected to be 20.4 percent.

For FY26, public sector credit growth is projected to hit 18.1 percent, taking into account lower credit demand from the government, as it has been selectively spending on priority projects as part of its austerity policy measures.

Moreover, the government’s budgetary target to borrow a total of Tk 104,000 crore from the banking system has also been duly considered in projecting the public sector credit growth limit.