Bangladesh Bank will announce its Monetary Policy Statement today for July-December 2025. The private sector credit growth target is lowered to 7.2%, while the policy rate stays at 10% to control inflation. Inflation has fallen to 8.48% but remains above the 7% threshold. The central bank also suggests rice imports to manage food prices. Experts have mixed views on the new credit growth target’s feasibility.
Details are given below:
Bangladesh Bank to Announce New Monetary Policy Today
On Thursday, 31 July 2025, Bangladesh Bank will officially announce the Monetary Policy Statement (MPS) for the first half of the 2025–26 fiscal year.
The announcement will be made at a press conference at the bank’s headquarters. Governor Dr. Ahsan H. Mansur will lead the announcement and explain how the current monetary policy has impacted inflation control, private sector credit, and overall economic growth.
Who Will Be Present at the Announcement?
Along with the Governor, several top officials will attend the event, including:
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The head of the Bangladesh Financial Intelligence Unit (BFIU)
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The Chief Economist of Bangladesh Bank
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Other senior bank officials
Read More: “People Will Never Forgive Hasina or Awami League”: Nahid Islam
Lower Target Set for Private Sector Credit Growth
Bangladesh Bank has revised down the private sector credit growth target to 7.2%, which is a significant drop from the previous 9.8%.
This decision was approved in a central bank board meeting held on Wednesday. One board member said this new target is more realistic given the recent economic performance.
Private sector credit growth was only 6.40% in June 2025, and it has been below 7% for several months. The bank now hopes this will rise to 8% by the end of FY26.
Policy Rate Remains Unchanged at 10%
The policy rate (repo rate) will stay at 10%, as part of the effort to bring inflation below the 7% mark. A senior central bank official said this decision is in line with Governor Mansur’s earlier position:
“নির্ধারিত সীমার নিচে না আসা পর্যন্ত নীতির হার কমানো হবে না।”
“The policy rate will not be reduced until inflation falls below the target threshold.”
Inflation Drops, But Still Above Target
Inflation has come down from 11.66% in July 2024 to 8.48% in June 2025—the lowest in almost three years. While this is a positive sign, it is still higher than the bank’s target.
The government aims for:
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Average inflation: 6.50%
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GDP growth: 5.50% by June 2026
Rice Imports Recommended to Curb Food Inflation
One board member mentioned that monetary policy alone cannot fully control inflation, especially food inflation, which is being driven by rising rice prices.
To solve this, the central bank plans to advise the government to import rice and maintain strong food reserves.
“চালের দাম বাড়ায় খাদ্য মুদ্রাস্ফীতি নিয়ন্ত্রণে আমদানি প্রয়োজন।”
“Due to rising rice prices, imports are necessary to control food inflation.”
Overview of Current Policy Rates
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Repo Rate: Unchanged at 10% (Last changed in October 2024)
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SLF (Standing Lending Facility): Stays at 11.50%
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SDF (Standing Deposit Facility): Reduced to 8% (Cut by 50 basis points in July 2025)
The cut in the SDF rate is meant to make the interbank money market more active and efficient.
Experts Divided on Growth Target
Skepticism from Economist Mustafa K Mujeri:
Former BIDS Director and Chief Economist of Bangladesh Bank, Mustafa K Mujeri, doubts whether the 7.2% credit growth target is realistic.
He pointed out several problems:
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Poor business environment
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Inconsistent fuel supply
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Weak law and order
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Low production and investment
“বর্তমানে বিনিয়োগ ও উৎপাদনের পরিবেশ নেই, তাই ঋণ প্রবৃদ্ধি বাড়বে না।”
“There is no proper environment for investment or production, so credit growth will not rise.”
Optimism from Banker Tanjil Chowdhury:
In contrast, Tanjil Chowdhury, Managing Director of East Coast Group and Chairman of Prime Bank, thinks the target is realistic.
He gave three main reasons:
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Government and business efforts will help tackle the US tariff issue, improving the investment climate.
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The temporary fall in import LCs will soon reverse, increasing imports and credit demand.
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Exports are stable, offering good growth potential.
“আমার বিশ্বাস, রপ্তানির দিকে মনোযোগ দিলে আমরা এই টার্গেট অর্জন করতে পারবো।”
“I believe we can achieve this target by focusing on the export sector.”
Source: Channel i
