TDS Desk:

The central bank will assess the impact of domestic and global shocks on inflation and economic growth before adjusting the rate.

Bangladesh Bank has decided to keep its policy interest rate unchanged at 9.5% to closely monitor the economic impacts of recent domestic and international shocks, including volatile global energy prices and a domestic fuel price hike.

The decision was taken at the 14th meeting of the Monetary Policy Committee (MPC) held at the central bank’s head office in Dhaka today (23 September), chaired by Bangladesh Bank Governor Mostaqur Rahman.

At the meeting, the MPC reviewed recent domestic and global macroeconomic developments and noted a downward trend in headline inflation. However, inflation remains above the government’s target ceiling of 7.50% for fiscal year 2026-27.

The committee identified several risks that could put renewed pressure on inflation. These include prolonged conflicts in the Middle East, which have kept global energy markets volatile, as well as the government’s recent increase in domestic fuel prices.

The implementation of a new national pay scale could also add to inflationary pressures, according to the MPC.

Against this backdrop, the central bank opted for a cautious approach, deciding to assess how the domestic and international shocks affect Bangladesh’s economy before making any changes to the existing policy rate.

The MPC will particularly monitor their impact on gross domestic product growth and consumer price inflation.

The meeting was attended by MPC members, including Deputy Governor Dr Habibur Rahman, economist Dr Mustafa Kamal Mujeri, BIDS Director General Dr AK Enamul Haque, Dhaka University Economics Department Chairperson Dr Firdousi Naher and MPD Executive Director Dr Imam Abu Sayed.