Bangladesh Bank will announce the Monetary Policy Statement (MPS) for the second half of the 2024-25 fiscal year (January-June 2025) on Monday (10 February), according to a press release issued by the central bank on Sunday (9 February).
According to the statement, BB Governor Ahsan H Mansur will formally unveil the MPS at a press conference at the central bank’s headquarters.
He will brief journalists on the outcomes of the current policy in managing inflation, enhancing credit flow to the private sector, and bolstering economic growth.
The event will be attended by deputy governors, the head of the Bangladesh Financial Intelligence Unit (BFIU), the executive director of the Research Department, the central bank's spokesperson, and other officials.
Sources indicate that the central bank is set to maintain the current policy interest rate for the second half of the fiscal year, with no significant changes in exchange rate management.
This approach is underpinned by a slight decline in inflation and the stabilisation of foreign exchange reserves at $20 billion.
Bangladesh Bank had previously announced its monetary policy for the first half of the fiscal year on 18 July last year, focusing on controlling inflation, stabilising the exchange rate, and increasing reserves.
Notably, that announcement was made solely via the bank’s website without a press conference.
At the time of the new governor’s appointment, the central bank's repo rate—used for short-term lending to banks—stood at 8.50%.
This rate has since been raised in three increments of 50 basis points, reaching 10%, pushing consumer lending rates above 16%.
Despite these hikes, inflation remained stubbornly high, prompting discussions on further rate increases.
However, with recent data showing a modest reduction in inflation, the central bank has decided against additional hikes for now.
Business leaders have consistently advocated for lower interest rates to stimulate investment and employment.
Insiders note that while the interim government has not achieved significant economic relief in its first six months, it has managed to halt the steady decline in several sectors.
In particular, stringent measures against money laundering have stabilised foreign exchange reserves, which have held steady at $20 billion.
As of last Wednesday, reserves stood at $20.20 billion, compared to $20.39 billion at the end of July last year—a figure that had plummeted from $48 billion.
The fact that reserves have remained stable despite repaying $3.3 billion in outstanding dues is seen as a positive sign.
Meanwhile, the exchange rate for the US dollar has stabilised between Tk122 and Tk124.
Inflation has also eased, dropping to 9.94% in January from 10.89% the previous month.