A policy panel at Bangladesh Bank has concluded that maintaining a tight monetary stance is now doing more damage to the country’s economic recovery than it is contributing to price stability.
The assessment marks a significant shift in the central bank’s internal calculus, signaling that the cost of keeping borrowing rates elevated is outweighing the benefits of inflation control.
The finding comes as Bangladesh navigates a fragile post-pandemic rebound, where high financing costs have begun to weigh heavily on corporate investment and consumer spending.
By acknowledging that the current policy mix is hindering growth, the panel opens the door for a potential easing cycle, which could provide relief to businesses and households burdened by expensive credit.
This development follows a period of cautious monetary tightening aimed at curbing inflationary pressures.
However, with growth momentum slowing, the central bank appears to be recalibrating its priorities.