Staff Correspondent:

Bangladesh Bank (BB) has announced a new monetary policy for the remainder of the current fiscal year 2024-25, targeting an inflation rate of 7-8% and setting GDP growth at 4-5%.

Governor Dr Ahsan H Mansur presented the new monetary policy during a press conference at Jahangir Alam Conference Hall of the central bank on Monday.

The monetary policy focuses on stabilising three key financial indicators: exchange rates, inflation and interest rates.

It also aims to provide a slight economic expansion, despite a significant decrease in private sector credit flow, as the global economic slowdown, along with the impact of domestic financial scams, has contributed to sluggish GDP and credit growths in Bangladesh.

Bangladesh Bank set to unveil monetary policy as rate speculation swirls

However, the policy interest rate remains unchanged, meaning lending rates will not rise further. Despite recommendations from the International Monetary Fund (IMF), the central bank has opted to maintain the policy rate.