The Bangladesh Bank has reduced its private sector credit growth target to 6.8% for the remainder of the year, citing sluggish demand across the economy.
The central bank, which sets monetary policy and regulates the financial sector in Bangladesh, lowered the benchmark from its previous projection as it assesses the current lending environment.
The adjustment reflects a cautious stance by policymakers who are grappling with subdued borrowing appetite among businesses.
With demand remaining weak, the central bank appears to be aligning its expectations with the reality of a constrained credit market, rather than attempting to stimulate lending through aggressive targets.
This development follows earlier indications that the central bank expects inflation to ease in the coming months.
Authorities have maintained that their tight monetary policy has successfully kept real interest rates positive, a measure intended to stabilize prices and preserve the value of the currency.