B Mirror Report: In a press release on Monday (February 9), one of the country’s largest private-sector business organizations stated that despite the prolonged implementation of a strict monetary policy, inflation has not been effectively controlled. Instead, productive economic activities are being severely hampered, which is highly concerning.

The Dhaka Chamber noted that credit flow to the private sector has dropped to its lowest level in 22 years. By the end of December 2025, this growth stood at just 6.1 percent. Abnormally high interest rates and the excessive cost of borrowing have practically stalled industrial expansion, new investment, and job creation.

At the same time, the chamber observed that broad money (M2) growth rose from 7 percent in June 2025 to 9.6 percent in December 2025. This indicates monetary expansion in the economy, raising serious questions about the effectiveness and policy consistency of the ongoing strict monetary measures.

The statement further noted that private-sector investment growth is also declining. In the 2025 fiscal year, it fell to 22.48 percent from 24.18 percent in the 2023 fiscal year. DCCI commented that achieving sustainable economic growth under such ineffective monetary policy is unrealistic for any country.

Highlighting the negative impact of contractionary monetary policy on the export sector, the Dhaka Chamber said that exports have steadily declined over the past six months. By December 2025, export growth reached a negative 14.25 percent, weakening Bangladesh’s competitiveness in global markets and posing risks to overall economic stability.

Considering the overall situation, the Dhaka Chamber believes that excessive and prolonged contractionary monetary policy cannot restore investment and employment.

The organization called on the incoming government to adopt a growth-friendly, realistic monetary policy while easing policy rigidity.

It also emphasized the need for coordination between revenue and monetary policies, flexible liquidity management, and balancing economic recovery with overall macroeconomic stability.