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The Monetary Policy Committee (MPC) of Bangladesh Bank on Thursday (September 24) decided to maintain its benchmark policy repo interest rate unchanged at 9.5 percent, opting to sustain a measured, non-expansionary monetary stance to curb persistent headline inflation while safeguarding systemic liquidity across scheduled commercial lenders.
According to the central bank's policy review document, while non-food inflation has exhibited modest stabilization in response to past cumulative interest rate hikes, volatile imported commodity prices, agricultural crop damage from severe monsoon inundations, and energy tariff adjustments require maintaining a restrictive monetary baseline.
The standing lending facility (SLF) rate remains unchanged at 11.0 percent, while the standing deposit facility (SDF) rate will stay anchored at 8.0 percent, preserving a tight interest rate corridor to discourage speculative borrowing and curtail non-essential credit demand.
Bangladesh Bank Governor emphasized that preserving macroeconomic stability and containing core consumer price pressures must precede any premature monetary easing. He noted that commercial lending rates, currently hovering between 13.5 and 15 percent, have effectively dampened speculative consumer credit.
The monetary committee also assessed foreign exchange market liquidity, observing that foreign currency reserves have stabilized around $20.5 billion under the crawling peg exchange regime, reducing speculative volatility across interbank foreign currency transactions.
Business chambers and industrial leaders acknowledged the necessity of inflation containment but urged the central bank to ensure adequate liquidity flows for manufacturing import raw materials and small enterprise working capital lines.
https://thedailyexpress.news/news/business/1f1b838b-0eb0-6e30-82d3-1180ff831dbb