The central bank has voiced fears that inflation may momentarily surge in light of the potential increase in consumer demand during the month of Ramadan and the forthcoming national elections. Bangladesh Bank has therefore chosen to maintain the policy interest rate at its current level following a thorough examination.

The central bank shared this information in a press release on Tuesday (18 November).

Recently, a meeting of the Monetary Policy Committee (MPC) of Bangladesh Bank was held, presided over by Governor Dr. Ahsan H. Mansur. Participants included MPC members Deputy Governor Dr. Md. Habibur Rahman, Chief Economist Dr. Mohammad Akhtar Hossain, BIDS Director General Dr. A K Enamul Haque, Dhaka University economics professor Masuda Yasmin, Executive Director Dr. Md. Ejazul Islam, and Member-Secretary Mahmud Salahuddin Naser.

The meeting reviewed various key issues, including the country’s macroeconomic situation, inflation trends, liquidity in the banking sector, policy interest rates, exchange rates, and pressures on the external sector. The committee noted that inflation has been gradually declining—overall inflation fell to 8.36% in September 2025, which is a positive development. However, concerns remain about possible price increases in some areas due to disruptions in the supply of food products.

Recent data showed that interbank call money and repo rates have slightly decreased. Increased investment in government securities has also eased interest rate pressure to some extent. However, private-sector loan demand remains low, influenced by uncertainty surrounding the national elections.

In the external sector, export growth remains moderate, while imports have increased. The committee considers the rise in imports to be normal due to the relaxation of LC margins for essential goods ahead of Ramadan. During the same period, remittance inflows were also strong. Additionally, it was cautioned that inflationary pressure may rise due to weather-related damage to Aman crops, the election, Ramadan, and the potential implementation of a new salary structure.

Taking everything into account, the Monetary Policy Committee (MPC) of Bangladesh Bank decided to keep the policy interest rate at 10%. The SDF rate will remain at 8%, and the SLF rate at 11.5%.

The committee stated that the tight monetary policy will continue until the real policy rate reaches 3%, to ensure macroeconomic stability and further control inflation.