BB cuts policy rate to 9.5pc to spur growth, boost private credit
DHAKA, July 30, 2026 (BSS) - Bangladesh Bank (BB) today reduced its key policy (repo) rate by 50 basis points to 9.50 percent in a move aimed at supporting economic growth, encouraging private sector investment and improving credit flow.
The decision was taken at the 13th meeting of the Monetary Policy Committee (MPC), chaired by Bangladesh Bank Governor Md Mostaqur Rahman.
Under the revised monetary policy framework, the repo rate has been lowered from 10 percent to 9.50 percent, while the Standing Lending Facility (SLF) rate has been reduced from 11.50 percent to 11.00 percent.
The Standing Deposit Facility (SDF) rate remains unchanged at 7.50 percent.
The MPC said the decision followed a comprehensive assessment of domestic and global macroeconomic conditions, including inflation trends and other key economic indicators.
The committee observed that the rate cut would help stimulate domestic investment, facilitate greater credit flow to the private sector and support employment generation, while keeping a close watch on the country's balance of payments situation.
The meeting was the first MPC session for the 2026-27 fiscal year and was held at the Bangladesh Bank boardroom.
Deputy Governor Dr Md Habibur Rahman, Executive Director of the Institute for Inclusive Finance and Development (InM) Dr Mustafa K Mujeri, Director General of the Bangladesh Institute of Development Studies (BIDS) Dr A K Enamul Haque, Chairman of the Department of Economics at the University of Dhaka Dr Ferdousi Nahar, Bangladesh Bank Chief Economist Dr Mohammad Akhtar Hossain and Executive Director Dr Imam Abu Sayeed also attended the meeting.
The revised policy rates will come into effect from August 2, 2026.