Bangladesh Bank (BB) has reduced its key policy rate (repo rate) by 50 basis points to 9.50 percent from 10 percent, aiming to boost private sector credit flow, spur investment, and accelerate economic recovery and employment generation.
The central bank issued a circular on Sunday (August 2) to the managing directors, chief executive officers, and administrators of all banks and finance companies, confirming that the new rates take effect immediately from August 2, 2026.
The decision was taken at a meeting of the Monetary Policy Committee (MPC) held on July 30, 2026, superseding the earlier policy rate corridor set in February 2026.
Under the re-aligned policy rate corridor, the upper limit—the Standing Lending Facility (SLF) rate—has also been slashed by 50 basis points to 11.0 percent from 11.50 percent.
However, the lower limit of the corridor, the Standing Deposit Facility (SDF) rate, remains unchanged at 7.50 percent.
According to the circular signed by Dr. Mohammad Monirul Islam Sarkar, Director of the Monetary Policy Department (MPD), the downward adjustment in policy rates is intended to facilitate private credit growth and create a more favorable environment for job-creating investments across the country.