Bangladesh Bank Holds Rates to Curb Inflation

The Bangladesh Bank left its benchmark interest rate unchanged at 10% at its June 2026 meeting, maintaining a tight monetary policy stance as it continues to prioritize bringing inflation under control despite slowing economic growth and heightened global uncertainties.

The central bank cautioned that the escalating conflict in the Middle East could disrupt supplies of oil and fertilizer, increasing imported inflationary pressures and posing risks to the country's economic recovery.

Although the economy has shown signs of gradual improvement, policymakers remain concerned about persistently high inflation, weak investment, labor market pressures, energy supply uncertainties, elevated non-performing loans (NPLs), and growing global economic risks.

Inflation eased to 9.4% in May 2026 from a peak of 11.7% in July 2024 but stays above the 7.5% target set by both the central bank and government.