BB to unveil first-ever quarterly monetary policy tomorrow

For the first time, Bangladesh Bank (BB) is set to announce its monetary policy on a quarterly basis, replacing the existing six-month cycle, at a press conference tomorrow.

The central bank has decided to move to quarterly statements to make monetary policy more responsive to volatile domestic and global economic conditions.

Tap here to add The Daily Star as a trusted source

The Monetary Policy Statement (MPS) for October-December 2026 will be announced at 3:00pm, with Deputy Governor Md Habibur Rahman as the chief guest, according to a press invitation issued by the central bank.

The MPS was initially an annual exercise before being shifted to a half-yearly schedule. The International Monetary Fund (IMF) had recommended a quarterly framework more than a year ago.

On July 26 this year, NCP MP Hasnat Abdullah proposed announcing the MPS every three months instead of following the existing six-month cycle at the first meeting of the parliamentary standing committee on the Ministry of Finance.

Later that month, a BB policy panel also recommended shifting to quarterly monetary policy statements to improve the responsiveness, transparency and effectiveness of monetary policy in a rapidly changing environment.

The central bank had kept its policy rate at 10 percent since October 2024. However, in July this year, BB cut its policy, or repo, rate to 9.5 percent from 10 percent, marking its first reduction in six years.

Although price pressures are easing, inflation remains high. Inflation fell for the third consecutive month to 8.26 percent in August, its lowest level in 10 months, after peaking at 9.42 percent in May.

The July MPS projected inflation to ease to 8.9 percent by December 2026 and 8.6 percent by June 2027, both above the government's FY27 ceiling of 7.5 percent.