Bangladesh Bank holds policy rate at 10% as inflation outlook improves

The central bank maintains its tight monetary stance for the second half of the fiscal year, citing positive real interest rates and expectations that price pressures will continue to ease.

By Handelsavisen Newsroom · Automated 2026-06-30 09:21 UTC · 1 min read

Bangladesh Bank has kept its key policy rate unchanged at 10 percent for the July-December period of the 2026-27 financial year.

The decision marks a continuation of the central bank’s restrictive monetary stance, which has been in place since October 2024, as authorities work to anchor inflation expectations and stabilize the macroeconomic environment.

Officials noted that the sustained high interest rates have kept real interest rates positive and close to their estimated natural levels.

The central bank’s latest monetary policy statement signals confidence that the current tightening cycle is yielding results.

Officials noted that the sustained high interest rates have kept real interest rates positive and close to their estimated natural levels.

This alignment is critical for ensuring that borrowing costs remain sufficiently high to dampen demand-pull inflation without stifling economic activity entirely.

Looking ahead, the Bangladesh Bank expects inflation to ease further in the coming months.