Bangladesh Bank cuts loan growth target, keeps policy rate at 10%

PNN News Desk | Dhaka

Bangladesh Bank has announced a new monetary policy for the first half of FY 2026–27, maintaining a strict stance to control inflation.

Private sector credit growth target has been reduced to 6.8%.

Policy rate remains unchanged at 10%.

Previously, the target was 8.5%, but actual growth has been only 4.98%.

Deputy Governor Habibur Rahman said the economy is growing at 4–5%, below the target range.

Standing Lending Facility remains at 11.5% and Standing Deposit Facility at 7.5%.

The central bank expects inflation to gradually decrease.

Officials said the policy aims to balance inflation control and economic growth.

A 18-month plan is being developed to reduce non-performing loans.

New laws are also being prepared for faster loan recovery.

The central bank also emphasized zero tolerance for banking irregularities.

It said Islamic Bank Bangladesh PLC is stable, with 13,000 crore taka liquidity support already provided.

By June 2027, private credit growth is targeted at 8%.

The bank also aims to reduce government borrowing from banks and ensure stable foreign reserves and remittance inflows.