Interest rate unchanged, Tk 60,000 crore incentive package announced
Graphics: Agamir Somoy
Bangladesh Bank has announced its new monetary policy for the first half of the 2026-27 fiscal year (July-December), maintaining a tight monetary policy to control inflation. The policy repo rate has been kept unchanged at 10 percent. At the same time, in order to overcome the stagnation in private sector credit and revitalize production, investment, and employment, the central bank has announced a special incentive package of Tk 60,000 crore for the industry, agriculture, and cottage, micro, small, and medium enterprise (CMSME) sectors.
The monetary policy for the first half of the 2026-27 fiscal year was announced on Tuesday at a press conference held at the Bangladesh Bank headquarters in Dhaka. Governor Mostaqur Rahman, Deputy Governor Habibur Rahman, and other senior officials of the central bank were present. Deputy Governor Habibur Rahman presented the various aspects of the monetary policy.
The announced monetary policy states that, according to the Bangladesh Bank Order, 1972 (amended in 2003), keeping inflation low and stable remains the central bank's primary objective. The main goals of this policy are to achieve sustainable economic growth by ensuring price stability, increase investment, maintain a stable real exchange rate, and facilitate international trade.
The monetary policy further said the economy was facing multiple challenges when the current government took office. Weaknesses in the banking sector, a crisis of confidence in the financial system, and high inflation had placed excessive pressure on the general public, particularly those with low and marginal incomes. In this context, a strategy has been adopted to encourage export-oriented and private sector-led economic growth alongside controlling inflation.
Bangladesh Bank indicated that while the tight stance on inflation control will continue, special emphasis has been placed on accelerating financing for productive sectors. To achieve this, the special incentive package of Tk 60,000 crore will be implemented for the industry, agriculture, and CMSME sectors. The central bank expects that this will have a positive impact on increasing production, encouraging new investment, and creating employment opportunities.
The monetary policy also noted that alongside reducing inflationary pressures and ensuring financial stability, Bangladesh Bank's main priorities include strengthening governance in the banking sector, restoring confidence in the financial system, and reinforcing the foundation for sustainable growth. With that objective in mind, the policy repo rate has been kept unchanged on one hand, while a substantial incentive package has been announced on the other to accelerate production and investment.
