New Monetary Policy to Be Announced June 30
Logo of Bangladesh Bank
The Bangladesh Bank will announce the monetary policy for the first half (July–December) of the 2026–27 fiscal year on June 30, prioritizing inflation control. However, the central bank is expected to maintain its contractionary policy stance.
In the upcoming monetary policy, the policy interest rate may remain unchanged at 10 percent. The main objective of this decision is to contain inflationary pressure. However, experts say that policy support, liquidity assistance, and dollar purchases from the market could create new challenges in controlling inflation.
There are also indications of a slight depreciation of the taka against the US dollar. At the same time, private sector investment growth may see a modest increase. If conditions remain stable, newly appointed Governor Md. Mostakur Rahman is expected to announce his first monetary policy on the eve of the new fiscal year.
Bangladesh Bank officials said the governor has instructed that the policy rate should not be reduced until inflation falls to the desired level. The latest point-to-point inflation rate stood at 9.04 percent in April. It was 8.71 percent in March. Officials said April’s inflation figure serves as a clear warning signal, showing that expected disinflation has not yet stabilized. Instead, price pressures have risen again. Food inflation increased from 8.24 percent in March to 8.39 percent in April, while non-food inflation rose from 9.09 percent to 9.57 percent. This indicates that inflationary pressure is not limited to food items such as rice, lentils, oil, fish, meat, and vegetables, but has also increased across housing rent, healthcare, education, transport, clothing, fuel, and other essential living costs.
World Bank Dhaka Office Chief Economist Dr. Zahid Hussain said that there is currently very little left of a contractionary monetary policy in practice. He noted that only a higher policy rate aligns with contractionary policy. Beyond that, cash support to factories, liquidity assistance to banks, and continuous dollar purchases by the central bank are increasing liquidity in the market. This is expected to support some increase in investment. However, he added that following the Iran-related tensions, uncertainty remains over new investment due to potential fuel, gas, and electricity shortages, despite having a political government in place.
In such a situation, he said there is no option but to keep the policy rate unchanged. He noted that there may be arguments and criticism on both sides, but monetary policy alone cannot control inflation. He stressed that controlling inflation requires coordination between macroeconomic policy and political prudence.
According to Bangladesh Bank sources, Governor Md. Mostakur Rahman will announce the monetary policy at 3:00 pm on June 30 at the Jahangir Alam Conference Hall of the central bank. Prior to that, approval will be taken from the board of directors on June 25, following standard practice. The 12th meeting of the Monetary Policy Committee on June 21 will review the policy in detail. Before that, a consultation meeting with economists, journalists, researchers, businessmen, deputy governors, and other stakeholders will be held on June 4.
Bangladesh Bank data shows that the central bank has been following a contractionary monetary policy since late 2024. In the most recent policy announced in February, the policy rate was set at 10 percent. The central bank also set the Standing Lending Facility (SLF) rate at 11.5 percent and the Standing Deposit Facility (SDF) rate at 8 percent. Inflation began rising in September 2022 after the taka started depreciating against the US dollar. The dollar currently trades at up to Tk 122.88.
Data shows inflation stood at 11.66 percent in July 2024. The Awami League government was overthrown in a student-led mass uprising on August 5, 2024. After the interim government took charge, the central bank fully adopted a contractionary monetary policy. As a result, inflation gradually declined from August 2024 and fell to 8.17 percent in October 2025. However, inflation has risen again over the past six months, crossing 9 percent.
