Today, Bangladesh Bank will announce the monetary policy statement (MPS) for the second half of the 2024-25 fiscal year (January-June 2025). This information was provided in a press release by Bangladesh Bank on Sunday.
It was stated that Dr. Ahsan H. Mansur, the Governor of Bangladesh Bank, will formally announce the MPS in a press conference at the central bank’s headquarters.
It further states that the Governor will brief the journalists on the results of the current MPS regarding inflation management, increasing the flow of credit to the private sector, and strengthening economic growth. The Deputy Governors, the head of the Bangladesh Financial Intelligence Unit (BFIU), the Executive Director of the Research Department, the spokesperson of Bangladesh Bank, and other officials will also be present at the event, as mentioned in the press release.
Dr. Ahsan H. Mansur, who became the Governor of Bangladesh Bank after the political change on August 5th of last year, will announce the monetary policy for the first time.
It is understood that the central bank is set to announce the monetary policy for the second half of the current fiscal year, keeping the policy interest rate unchanged. There will also be no major changes in the exchange rate management. This policy announcement is being made primarily due to the slight decrease in inflation and the stability of reserves at 20 billion dollars. Controlling inflation, stabilizing the exchange rate, and increasing reserves were considered the main challenges, leading Bangladesh Bank to announce the monetary policy for the first half of the current fiscal year on July 18th of last year. Instead of holding a press conference, the monetary policy statement was simply posted on the website.
When the new governor took office, the repo rate used for short-term loans to banks was 8.50%. It was raised in three phases by 50 basis points each, reaching 10%. As a result, interest rates for customers have now exceeded 16%. Despite this, inflation did not decrease, leading to discussions about further increasing the policy rate. However, according to the latest data, inflation has slightly decreased. As a result, the policy rate will not be increased for the time being. Meanwhile, business leaders have been calling for a reduction in interest rates, considering the need for investment and employment, rather than an increase.
LND/SAKIB
