Stakeholders and economists have advised Bangladesh Bank to keep the policy rate unchanged at 10 per cent, arguing that current economic conditions favour stability over further tightening or easing.
The view emerged at a monetary policy consultation meeting held at Bangladesh Bank, attended by business leaders from various sectors, economists and senior central bank officials.
Participants said inflation remaining above 9 per cent constrains policy options. Raising the policy rate could further increase borrowing costs and weigh on investment, while lowering it could risk fuelling additional price pressures.
Several attendees said maintaining the rate at its current level would help contain inflation without putting extra stress on credit flows and investment activity.
One participant said many at the meeting felt a rate hike was unnecessary at this stage, but a cut would also be inappropriate given persistent inflationary pressures.
The consultation also discussed broader economic challenges, including rising non-performing loans in the banking sector and prevailing liquidity conditions.
