BB tightens credit flow to private sector

Banglapress Published: 23 September 2025, 10:25 AM

BB tightens credit flow to private sector

Bangla Press Desk: The Bangladesh Bank on Thursday tightened private sector credit growth in its newly unveiled monetary policy for the first half of FY2025-26, aiming to contain inflation and ensure macroeconomic stability. As part of the cautious approach, the central bank has reduced the private sector credit growth target to 8%, down from the previous 9.8%. Officials said the measure is intended to curb excess demand and rein in inflation, which fell to a 35-month low in June but still remains above the central bank’s desired range. The policy also reinforces the central bank’s commitment to a market-based interest rate regime under the monetary targeting framework.

While businesses have urged for lower interest rates to stimulate investment, the central bank stressed that maintaining monetary discipline is vital in the current economic context. This article was originally published on Daily Sun.

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B P/SP

[Bangla Press is a global platform for free thought. It provides impartial news, analysis, and commentary for independent-minded individuals. Our goal is to bring about positive change, which is more important today than ever before.]