Bangladesh Bank on Tuesday unveiled its monetary policy for the July-December period, retaining the policy rate at 10 percent while seeking to curb inflation.

Governor Mostaqur Rahman announced the monetary policy for the first half of the new fiscal year at a press conference held at the central bank.

Bangladesh Bank (BB) will firmly stick to its flexible, market-determined exchange rate regime to protect the country's external sector from international shocks, expand exports, and optimize remittance inflows, official sources said.

Unveiling the new Monetary Policy Statement (MPS) for the July–December period of the fiscal year FY2026-27, Mostaqur Rahman reiterated that the market-driven exchange mechanism remains a vital strategic pillar for the country's macroeconomic stability.

Deputy Governor Dr. Habibur Rahman delivered the keynote presentation highlighting the core parameters of the monetary path.

The central bank noted that despite the contractionary measures that successfully brought point-to-point headline inflation down from a peak of 11.7 percent in July 2024 to 9.4 percent in May 2026, the domestic economy is still battling elevated cost pressures.

Central bank officials pointed out that a significant portion of current inflationary pressure is driven by persistent structural issues, supply chain disruptions, rising energy expenses, and high import costs. In this context, maintaining a rigid, artificially controlled exchange rate could severely harm the competitive edge of national industries and further strain foreign exchange reserves.

Instead, under the fully market-aligned structure, the real exchange rate will continue to function dynamically based on supply and demand, which is anticipated to minimise informal hundi channels, accelerate official remittance channels, and ensure transparency across the banking infrastructure.

To offset the growth slowdown and credit crunch linked to prolonged economic tightropes, Governor Mostaqur Rahman simultaneously announced a massive Tk 60,000 crore special stimulus initiative tailored for core productive sectors including agriculture, industrial manufacturing, and CMSMEs.