July-Dec MPS set to be unveiled today

July-Dec MPS set to be unveiled today

It has been kept unchanged at 10 percent since October 2024

The Standing Lending Facility (SLF) rate and the Standing Deposit Facility (SDF) rate have been kept at 11.5 percent and 7.5 percent respectively

The Bangladesh Bank (BB) has lowered its private sector credit growth target to 6.8 percent by the end of December this year, against the backdrop of sluggish demand

Bangladesh Bank’s Monetary Policy Statement (MPS) for July-December 2026 arrives at a difficult moment for the economy

The government and BB have also rolled out reform measures to stabilise the economy

Monetary policy affects inflation through several channels

The stance remains contractionary, with the central bank adding targeted credit stimulus rather than broad-based rate easing

Economists question whether monetary tightening can succeed while the central bank continues to inject funds into banks