BB keeps policy rate at 9.5% in first quarterly monetary policy

Bangladesh Bank has kept its policy rate unchanged at 9.5% for the October-December quarter, shifting to a quarterly monetary policy cycle for the first time.

The central bank said on Wednesday that inflation eased to 8.26% in August from 9.16% in June, but risks remain amid supply and cost pressures.

It cited volatile global energy prices linked to the prolonged Middle East conflict and disruptions in the Strait of Hormuz, higher administered fuel prices and the potential impact of the national pay scale.

At the same time, economic activity remains weak, reflected in sluggish industrial production, slow private-sector credit growth and a depressed Purchasing Managers’ Index, BB said.

The Standing Lending Facility (SLF) was also kept at 11%, while the Standing Deposit Facility (SDF) remained at 7.50%.