BB to hold tight stance

Bangladesh Bank unveils its next monetary policy today (Monday), with officials indicating that the central bank will maintain its tight stance for another six months to rein in inflation and stabilise the exchange rate.

The Monetary Policy Statement (MPS) for the second half (January-June) of the current fiscal year (FY2025-26) is set for the announcement by BB Governor Dr Ahsan H Mansur at a press conference at the central bank headquarters in Dhaka at 11:00am, officials said on Sunday.

They said all policy rates are likely to remain unchanged, as the central bank aims to closely monitor inflation trends over the next couple of months before deciding on its next course of action.

"We have formulated our latest monetary policy with top priority given to curbing inflationary pressure in the economy while keeping the exchange rate stable," a senior BB official told The Financial Express, replying to a query.

The BB's latest move comes at a time when inflationary pressure has risen for three consecutive months, despite the central bank maintaining a tight monetary policy stance.

Inflation, as measured by the consumers' price index (CPI), rose to 8.58 per cent in January 2026 from 8.49 per cent in the previous month on a point-to-point basis. It was 8.29 per cent in November 2025.

The central banker, however, hinted at a slight upward revision in the private sector credit growth projection for the H2, despite a declining trend in recent months.

Growth in credit to the private sector fell to 6.10 per cent in December 2025 on a year-on-year basis, down from 6.58 per cent a month earlier.

This was 1.10 percentage points below the central bank's target of 7.20 per cent for the H1 of the current fiscal year.

In the outgoing MPS, the central bank projected private sector credit growth at 8.0 per cent for the January-June period of FY26.

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