Bangladesh Bank Releases Monetary Policy Statement

Bangladesh Bank Releases Monetary Policy Statement for July–December 2026, Reaffirming Focus on Inflation Control and Macroeconomic Stability

Bangladesh Bank has published its Monetary Policy Statement (MPS) for July–December 2026 (H1 FY2026–27), outlining the central bank's monetary policy priorities for the first half of the fiscal year. The latest MPS maintains a cautious monetary policy stance aimed at containing inflation, preserving macroeconomic stability, and supporting sustainable economic growth. To achieve these objectives, Bangladesh Bank has kept the policy (repo) rate unchanged at 10.00%, while the Standing Lending Facility (SLF) rate remains at 11.50% and the Standing Deposit Facility (SDF) rate at 7.50%. The statement also highlights the central bank's continued commitment to strengthening the financial sector, maintaining exchange rate stability, improving credit discipline, ensuring effective liquidity management, and supporting productive sectors through prudent monetary policy. The MPS provides important guidance for banks, financial institutions, businesses, investors, researchers, and policymakers on the monetary policy outlook and the expected direction of Bangladesh's economy during the first half of FY2026–27.

Key Highlights of the Monetary Policy Statement (July–December 2026)

Bangladesh Bank has maintained a cautious monetary policy stance to balance inflation control with sustainable economic growth and macroeconomic stability.

Policy (Repo) Rate: 10.00% (Unchanged) Standing Lending Facility (SLF) Rate: 11.50% (Unchanged) Standing Deposit Facility (SDF) Rate: 7.50% (Unchanged)

The primary objective remains to bring inflation under control while ensuring price stability across the economy.

The policy aims to preserve overall macroeconomic stability by maintaining balanced monetary conditions and supporting economic resilience.

Continued emphasis on strengthening the banking and financial sector, enhancing financial resilience, and improving institutional soundness.

The MPS highlights the importance of improving credit discipline, promoting responsible lending practices, and strengthening risk management in the banking sector.

The central bank will continue prudent liquidity management to maintain adequate liquidity while supporting monetary policy objectives.

The MPS seeks to support sustainable and inclusive economic growth while ensuring long-term financial and macroeconomic stability.

Bangladesh Bank will continue to monitor domestic and global economic developments and adjust its policy measures, if necessary, to achieve its inflation and growth objectives.