Bangladesh Bank Cuts Repo Rate to 9.50% to Boost Growth

Bangladesh Bank has reduced its key policy rate, known as the repo rate, by 50 basis points to 9.50 percent from 10 percent in a move aimed at increasing private sector credit flow, encouraging investment and supporting economic recovery.

The central bank issued a circular on Sunday, instructing managing directors, chief executive officers and administrators of all banks and finance companies that the revised rates would come into effect immediately from August 2, 2026.

The decision was taken at a meeting of the Monetary Policy Committee (MPC) held on July 30, 2026, replacing the previous policy rate corridor introduced in February 2026.

Under the revised policy rate framework, the upper limit of the corridor—the Standing Lending Facility (SLF) rate—has also been reduced by 50 basis points to 11 percent from 11.50 percent.

However, the lower limit, 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, the rate cut is intended to encourage private sector lending and create a favourable environment for investment and employment-generating activities.