Bangladesh Bank has projected that Bangladesh's gross domestic product (GDP) growth in the upcoming FY27 may be 6.1%, lower than the 6.5% growth target set in the government's announced budget.
At the same time, the central bank has decided to keep the three main policy interest rates, including the policy rate, unchanged to maintain stability in the economy by keeping inflation under control.
The central bank announced this information on Tuesday (June 30) while releasing the Monetary Policy Statement (MPS) for the July-December period of FY27.
The Bangladesh Bank's assessment said that the economic recovery trend has started in the outgoing FY26.
According to the provisional estimates of the Bangladesh Bureau of Statistics (BBS), the GDP growth in that fiscal year was 4.14%, which is a significant improvement compared to the 3.49% of the previous fiscal.
In this continuation, growth is expected to increase further in the next fiscal year, but it will remain below the government's target.
The new monetary policy states that the main goal of the government's fiscal strategy in the next fiscal year will be to support growth while maintaining fiscal discipline.
For this, plans have been made to reform the tax system, rationalize government spending, target-based subsidies, expand social security programs, and prioritize development spending.
Bangladesh Bank said that the new government is following a growth-friendly but fiscally prudent and sustainable policy.
Emphasis is being placed on restoring stability in the economy, improving the private investment environment, and implementing structural reforms to strengthen the foundation for long-term growth.
The monetary policy states that the first phase of the '3R' strategy—Recovery and Stabilization and Restoration and Reconstruction for Acceleration—determined in the government's announced budget will ensure macroeconomic stability in the next one year.
At the same time, special emphasis will be given to protecting the vulnerable and backward communities affected by the economic shock.
It has also been reported that initiatives will be taken under this strategy to further strengthen social security programs, improve the quality of government services, facilitate trade and commerce, and increase coordination among government institutions.
On the other hand, in order to control inflation and carefully manage the flow of money in the market, Bangladesh Bank has not made any changes to the policy interest rate.
As a result, the policy repo rate has been maintained at 10%, the Standing Lending Facility (SLF) at 11.5%, and the Standing Deposit Facility (SDF) at 7.5%.
According to the central bank, the new monetary policy has been formulated with these three goals in mind: controlling inflation, maintaining stability in the financial sector, and creating a conducive environment for investment and production-oriented growth.