.jpg)
1 hour ago
3
Article content
(Bloomberg) — Bangladesh’s central bank kept its benchmark interest rate unchanged on Tuesday, opting for caution amid lingering external risks.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The Bangladesh Bank held the overnight repurchase rate at 10% on Tuesday and said in a monetary policy statement that it would maintain a “contractionary monetary policy stance” through the first half of fiscal 2027 to rein in price pressures and anchor inflation expectations.
Article content
Article content
The decision, the first monetary policy announcement under Governor Mostaqur Rahman since he took office in February, comes as Bangladesh remains exposed to higher energy prices as a result of the Iran war. The South Asian nation imports about 95% of its energy needs, although the conflict has since eased.
Article content
Article content
The central bank forecast a gradual recovery in economic activity and investment, driven by tax rationalization in the budget and its targeted lending initiatives. Still, it said the outlook remains clouded by external pressures from volatile import costs, stubborn inflation and moderating remittance inflows.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Inflation remains high, with consumer prices rising 9.42% in May from a year earlier, the fastest pace in 16 months and well above the central bank’s 7% target.
Article content
Bangladesh’s economy has been hit by a series of shocks in recent years. Since the ouster of former Prime Minister Sheikh Hasina in August 2024, the country has grappled with supply chain disruptions and higher US tariffs that have weighed on exports and its vital garment industry.
Article content
The taka has also fallen to a record low against the dollar, pressured by weaker remittance inflows and a backlog of deferred payments linked to earlier spikes in global oil prices.
Article content
In a bid to shore up the economy, the government this month sought a new loan arrangement of about $2 billion from the International Monetary Fund.
Article content
English (US)