The Bangladesh Bank has reduced its benchmark repo rate by 50 basis points to 9.5%, marking the first adjustment to the country’s key interest rate since October 2024.
The central bank announced the cut on Thursday, with the revised rate set to take effect on August 2, 2026.
This rate cut breaks a nearly two-year period of policy stability, during which the repo rate had remained unchanged at 10%.
The decision reflects a shift in monetary policy stance as policymakers respond to weakening economic momentum.
The move comes after the central bank previously lowered its private sector credit growth target to 6.8% for the remainder of the year, citing sluggish demand across the economy.
By easing borrowing costs, the Bangladesh Bank aims to stimulate lending and support economic activity in a slowing environment.
This rate cut breaks a nearly two-year period of policy stability, during which the repo rate had remained unchanged at 10%.