The Dhaka Chamber of Commerce and Industry (DCCI) has voiced strong concern over Bangladesh Bank's decision to hold the policy rate steady at 10 percent, calling the move "highly disappointing" for businesses as private sector credit growth slowed to 5 percent in May.
A contractionary monetary stance maintained over the past four years has failed to rein in inflation, which instead rose to 9.42 percent in May – the highest in South Asia, DCCI President Taskeen Ahmed said in a statement on Tuesday.
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The chamber pointed to a disconnect between fiscal and monetary policy, noting that the newly approved Tk 9.38 trillion national budget carries tax and duty incentives meant to spur investment and industrialisation, but these growth-oriented measures find no echo in the latest monetary stance.
A prolonged high policy rate, it said, leaves little scope to ease borrowing costs for businesses.
DCCI welcomed the Tk 60 billion refinancing and incentive package unveiled by the central bank to revive business activity, but urged transparent and efficient implementation, citing past shortcomings.
It called for simplified eligibility, minimal paperwork and faster approvals so that CMSMEs, export-oriented industries and other struggling enterprises can access the fund.
While supporting the revival of shuttered industries, the chamber said priority should go to businesses currently at risk of closure, urging swift disbursement to genuinely affected entrepreneurs.
DCCI also flagged the government's rising bank borrowing, with public sector credit growth nearing 26 percent, well above target, as a major concern, warning that it is squeezing liquidity available to the private sector, whose credit growth target stands at 6.8 percent by December 2026.
It said budget incentives, however attractive, will have limited impact without adequate and affordable financing.
The chamber called for closer fiscal-monetary coordination to ensure policy coherence and sustain private sector-led growth amid prevailing economic challenges.
Bangladesh Bank on Tuesday unveiled its monetary policy for July-December, retaining the policy rate at 10 percent in a bid to curb inflation. Governor Md Mostaqur Rahman announced the policy at a press conference held at the central bank.