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In a major structural shift toward dynamic macroeconomic management, Bangladesh Bank is set to unveil its monetary policy for the October–December period on Wednesday (September 30), marking the central bank's maiden transition to a quarterly Monetary Policy Statement (MPS) framework. The new policy stance will be officially announced at a press conference scheduled for 3:00 pm at the central bank's Motijheel headquarters in Dhaka, with Deputy Governor Dr. Md. Habibur Rahman attending as the chief guest. Bangladesh Bank previously formulated and issued its monetary policy on a semi-annual basis, and the transition to a three-month review cycle is designed to allow authorities to respond more rapidly to volatile inflation and liquidity movements.
The launch of the quarterly framework arrives as monetary authorities navigate the complex task of balancing stubbornly elevated consumer inflation against sluggish private sector investment and depressed credit demand. Central bank data reveals that private-sector credit growth stood at 4.75 percent year-on-year in August 2026, remaining stagnant below the 5.0 percent threshold for a sixth consecutive month. The central bank had previously established an ambitious target of 6.8 percent private sector credit expansion by December 2026, creating urgent pressure on policymakers to revive private borrowing appetite without reigniting price pressures.
Senior commercial bankers and economists attribute the prolonged credit slowdown to a confluence of adverse factors, including subdued investment confidence, persistent energy shortages, elevated borrowing costs, and deteriorating non-performing loan ratios across several commercial lenders. To support economic revival, Bangladesh Bank had previously executed a 50-basis-point reduction in its benchmark policy (repo) rate on July 30, lowering it from 10.0 percent to 9.5 percent, effective August 2. However, at its most recent Monetary Policy Committee meeting on September 23, the central bank opted to hold the repo rate steady at 9.5 percent to evaluate emerging domestic and global inflationary risks.
While headline inflation has demonstrated slight moderation, price pressures remain uncomfortably high across essential commodity baskets. Official figures from the Bangladesh Bureau of Statistics (BBS) indicate that overall point-to-point inflation fell marginally to 8.26 percent in August from 8.32 percent in July—marking its lowest level in 10 months. Nevertheless, the prevailing rate remains well above the government's official inflation ceiling of 7.5 percent established for the 2026–27 fiscal year. Economists noted that moving to quarterly reviews directly implements policy advice from the International Monetary Fund (IMF), aligning Bangladesh with modern central banking standards.
Outlining the significance of Wednesday's policy announcement, senior central bank officials noted that the quarterly mechanism will enhance market transparency. Discussing the policy launch ahead of the 3:00 pm briefing, Deputy Governor Dr. Md. Habibur Rahman said, "The transition to a quarterly monetary policy statement allows Bangladesh Bank to maintain agile, real-time control over inflation and market liquidity, ensuring that our policy instruments support sustainable private sector growth while firmly anchoring inflation expectations." Officials confirmed that the policy document will outline updated liquidity benchmarks and growth projections through December.
