Bangladesh Bank maintains policy rate at 10%

The central bank’s latest monetary policy statement (MPS) said the current strategy has successfully shifted the real policy rate into positive territory.

While the primary policy rate and the standing lending facility remain unchanged at 11.5 per cent to suppress inflationary pressures, a 50-basis-point reduction from 8 per cent to 7.5 per cent was announced in the standing deposit facility by central bank governor Ahsan H Mansur.

He said the move is designed to transition the banking sector from passive liquidity management to active lending, according to domestic media outlets.

The SDF rate was lowered to 7.5 per cent to discourage commercial banks from idling excess funds at the central bank, he added, cautioning that while the inflation target is set at 7 per cent, price growth remains sticky due to supply-side bottlenecks and structural rigidities.

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