2026.06.3012:57:56UTC+00Bangladesh Bank Holds Rates to Curb Inflation

Bangladesh Bank kept its benchmark interest rate unchanged at 10% at its June 2026 meeting, maintaining a tight monetary policy stance as it continues to prioritize taming inflation amid slowing economic growth and elevated global uncertainty. The central bank warned that the worsening conflict in the Middle East could disrupt supplies of oil and fertilizer, heightening imported inflationary pressures and threatening the country’s economic recovery. While the economy has shown signs of gradual improvement, policymakers remain concerned about stubbornly high inflation, weak investment, labor market strains, uncertainty over energy supplies, elevated non-performing loans (NPLs), and mounting global economic risks. Inflation eased to 9.4% in May 2026 from a peak of 11.7% in July 2024, but remains above the 7.5% target set jointly by the central bank and the government.