The Standing Deposit Facility (SDF) was reduced to 7.5 per cent from 8 per cent in the monetary policy statement for the second half of fiscal year (FY) 2025-26, which was announced on 9 February.
The move is expected to improve liquidity management, increase interbank transactions and facilitate private sector credit growth in the country, said Mahmud Salahuddin Naser, executive director (research) of the Monetary Policy Department at Bangladesh Bank.
Naser made this comment while presenting the keynote at a workshop on the central bank’s policy stance for January-June FY26.
The event, styed “Monetary Policy Statement: Relevance for Banks”, was organised by the Bangladesh Institute of Bank Management at its auditorium in Dhaka on Wednesday.
He further said that the central bank will maintain the policy rate at 10 per cent and continue its contractionary stance for the six-month period.
Naser also highlighted key achievements of the monetary policy statement for July-December of FY26, which includes moderating inflation, introducing risk-based supervision across and easing the liquidity crunch across all banks.
Against this backdrop, he said these steps helped reduce short-term stress in the financial system.
Naser added that Bangladesh Bank has planned forward-looking policy initiatives, including measures to recover stolen assets, promote financial inclusion as well as a cashless society, and develop the bond market.
Dr Md Ezazul Islam, director general of the BIBM, said research-based dialogue and capacity building are vital for ensuring a resilient and forward-looking banking sector.
The event was attended by bankers, economists, academics and policymakers.
