The Dhaka Chamber of Commerce and Industry (DCCI) has voiced deep concern over Bangladesh Bank’s decision to keep the policy rate unchanged at 10 per cent, calling it “highly disappointing” for the business community at a time when private sector credit growth has slumped to 5 percent in May 2026.
In a statement, the DCCI said that despite four years of contractionary monetary policy, inflation has not been brought under control. Instead, it rose to 9.42 per cent in May — the highest among South Asian countries.
The chamber noted that the recently approved Tk9.38 lakh crore national budget had introduced various tax and duty incentives aimed at expanding businesses, encouraging private investment and accelerating industrialisation.
However, these growth-oriented fiscal measures are not reflected in the new monetary policy, the DCCI said, pointing to “a clear lack of coordination between fiscal and monetary policies.”
It added that maintaining a high policy rate continues to limit the scope for reducing the cost of borrowing for businesses.
The DCCI welcomed Bangladesh Bank’s Tk6,000 crore refinancing and incentive package aimed at reviving business activities, but urged transparent, efficient and effective implementation, drawing on lessons from past experience.
The chamber said cottage, micro, small and medium enterprises (CMSMEs), export-oriented industries and other productive enterprises that have already been severely affected and are struggling to survive should be able to access the facility through simplified eligibility criteria, minimal documentation requirements and a faster approval process.
“While reviving industries that have already ceased operations is important, providing priority support to businesses that are currently at risk of closure is even more critical,” the DCCI said, urging swift and effective disbursement of the package to genuinely affected entrepreneurs and businesses.
The chamber also flagged the government’s growing reliance on bank borrowing as a serious concern. With public sector credit growth at nearly 26 percent — well above target — a significant share of the banking sector’s limited liquidity is being absorbed by the government, leaving insufficient credit for the private sector, which is targeted at 6.8 percent growth by December 2026.
“Regardless of how attractive the fiscal incentives announced in the national budget, their intended impact will remain limited without adequate and affordable access to financing,” the DCCI said.
The chamber called for closer coordination between monetary and fiscal authorities to ensure greater policy coherence and support sustainable, private sector-led economic growth amid prevailing economic challenges.
