Bangladesh Bank Governor Ahsan H. Mansur has said the contractionary monetary policy applied in the second half of the last fiscal year will continue in the first half of the new fiscal year.

The governor made the remark while speaking at the unveiling of the monetary policy for fiscal year 2025-26’s first half on Thursday (July 31).

He said the year-end targets include inflation at 7%, policy interest rate at 10%, and private sector credit growth at 7.2%. Several senior Bangladesh Bank officials were present at the event.

Governor Mansur noted that the central bank purchased $50 million from the market due to sufficient dollar reserves and will continue to buy more to maintain market stability.

He added that if inflation decreases and the market remains stable, economic growth is expected to rise, with a projected growth rate of 5 to 6% next year.

Addressing the recent controversy over Bangladesh Bank employees’ dress code, he described the issue as embarrassing and said it occurred during his absence. Upon learning about it, he suspended the directive.

MSK/