The Dhaka Chamber of Commerce and Industry (DCCI) has expressed deep concern over the Bangladesh Bank’s decision to keep the policy interest rate unchanged at 10 percent despite private sector credit growth falling to 5 percent, warning that the continuation of a tight monetary policy could significantly diminish the benefits of the newly announced growth-oriented national budget.

In a statement issued on Tuesday, DCCI President Taskeen Ahmed said that although the central bank has pursued a contractionary monetary policy for the past four years, inflation has not declined as expected. Instead, inflation rose to 9.42 percent in May this year, the highest among South Asian countries.

He noted that the Tk 9.38 trillion national budget for FY2026-27 includes various tax and duty incentives aimed at expanding businesses, increasing investment, and accelerating industrialisation. However, he said the growth-oriented approach reflected in the fiscal policy has not been matched by the monetary policy, creating a clear policy mismatch.

According to the DCCI, the continued high policy rate has kept borrowing costs elevated, discouraging private investment and limiting the effectiveness of the budget’s incentives.

The chamber welcomed Bangladesh Bank’s announcement of a Tk 60,000 crore stimulus fund but stressed that the programme must be implemented in a transparent, efficient and accountable manner. It urged the authorities to ensure quick and easy access to the fund for struggling cottage, micro, small and medium enterprises (CMSMEs), export-oriented industries and productive sectors.

The DCCI also called for priority support to revive closed industrial units and assist businesses at risk of shutting down, ensuring that financial assistance reaches genuinely affected entrepreneurs without delay.

The business body further voiced concern over the government’s growing reliance on bank borrowing. It noted that public sector credit growth has reached nearly 26 percent, well above the target, diverting a significant portion of the banking sector’s limited liquidity away from private borrowers.

While Bangladesh Bank has set a private sector credit growth target of 6.8 percent by December this year, the DCCI warned that achieving sustainable private sector-led economic growth would be difficult unless businesses gain access to affordable financing.

The chamber concluded that regardless of the tax and revenue incentives announced in the national budget, their intended impact would remain limited if entrepreneurs cannot secure adequate credit at reasonable interest rates. It therefore called for stronger coordination and greater policy consistency between monetary and fiscal policies to address current economic challenges and support long-term growth.