Bangladesh Bank Governor Ahsan H Mansur said today (29 November) that the central bank’s 10% policy rate could be lowered if inflation declines to below 8.2%.
Speaking at the Fourth Bangladesh Economic Conference 2025, the governor said the existing policy rate is “not high,” noting that monetary adjustments will depend on sustained improvements in inflation.
Mansur also announced that the newly formed United Islami Bank, created through the merger of five Shariah-based lenders, is set to begin operations next week. The consolidation is part of broader efforts to stabilise the banking sector.
Addressing longstanding issues in the financial system, the governor said resolving the country’s high level of non-performing loans (NPLs) will require five to ten years, emphasising the need for structural reform and stronger governance.
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