10% policy rate to be reduced if inflation drops below 8.2%: BB governor
Tackling the issue of non-performing loans will take five to 10 years, says Ahsan H Mansur.
Bangladesh Bank Governor Ahsan H Mansur said today (29 November) the central bank's policy rate is currently 10%, which will be lowered if inflation drops below 8.2%.
Speaking at the Fourth Bangladesh Economic Conference 2025, the central bank governor remarked that the current rate is "not high."
He said the gap between the policy interest rate and inflation should be between 2.5% and 3%.
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Mentioning that inflation stands at 8.2%, he added that if it falls further, ideally into the 7% range, the policy rate will be reduced.
Mansur also announced that the new United Islami Bank, being created through the merger of five Shariah-based lenders, is set to begin operations next week.
Addressing challenges in the banking sector, Mansur noted that tackling the issue of non-performing loans (NPLs) will take five to 10 years.
