Bangladesh Bank decided to keep the policy rate unchanged for the time being after reviewing domestic and global inflation and the overall macroeconomic situation. The decision was taken at the 14th meeting of the Monetary Policy Committee (MPC), chaired by Bangladesh Bank Governor Md Mostaqur Rahman, on Wednesday at the central bank’s headquarters in Motijheel, Dhaka.

A press release issued to the media after the meeting said the committee reviewed recent domestic and global macroeconomic conditions. It found that although headline inflation has eased somewhat, it remains above the government’s target for the 2026–27 fiscal year. The government has set a target of bringing inflation down to 7.50 percent in the current fiscal year.

The meeting noted that international fuel oil prices continue to fluctuate due to the ongoing Middle East conflict. The recent increase in fuel prices and implementation of the new pay scale could also create new inflationary pressures in the future.

In this situation, the Monetary Policy Committee decided to closely monitor the impact of domestic and international shocks on gross domestic product (GDP) growth and overall inflation, measured by the Consumer Price Index (CPI). So it has decided to keep the existing policy rate unchanged until the current economic impacts can be assessed.

Earlier, on July 31, Bangladesh Bank decided to cut the policy rate after 21 months, and reduced the rate by 50 basis points from 10 percent to 9.50 percent.