Bangladesh Bank keeps policy rate unchanged to tackle inflation

The central bank’s latest monetary policy targets an inflation rate of 7-8 per cent and sets gross domestic product (GDP) growth at 4-5 per cent, domestic media outlets reported.

Inflation, which surpassed 11 per cent in July 2024, declined to 9.94 per cent last month.

The bank has been hiking the policy rate for close to two-and-a-half years since May 2022 to battle inflation. This has badly affected people's purchasing capacity and hit domestic demand.

The International Monetary Fund (IMF) said last December that near-term policy tightening is crucial to address the emerging external financing gap and high inflation in the country.

ALCHEMPro News Desk (DS)