Bangladesh Bank (BB) has reduced its key policy (repo) rate by 50 basis points to 9.50 percent, effective from August 2, 2026. The decision aims to support economic growth, encourage private sector investment, and improve credit flow. The Monetary Policy Committee (MPC), chaired by Governor Md Mostaqur Rahman, made the decision after assessing domestic and global macroeconomic conditions.
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 believes the rate cut will stimulate domestic investment, facilitate greater credit flow to the private sector, and support employment generation. The committee will closely monitor the country's balance of payments situation.
The meeting, held at the Bangladesh Bank boardroom, was attended by 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.
This rate cut is expected to have a positive impact on Bangladesh's economy by encouraging more private sector investment and improving credit availability, which are crucial for sustained economic growth and development.
