The continuation of a tight monetary policy by keeping the policy rate unchanged at 10 percent could lead to higher production costs, public-private dialogue platform Business Initiative Leading Development (BUILD) said yesterday.

The Bangladesh Bank (BB) has maintained its tight monetary policy stance for the second half of the current fiscal year (FY) 2024-25 to tame the stubbornly high inflation. 

This stability is anticipated to curb volatility in domestic commodity prices and bolster overall economic resilience.

GDP growth is expected to bounce back to 6% in FY26

Despite various monetary and fiscal tightening measures, inflation has remained persistently high, staying above 10 percent

The central bank said it would keep its key policy rate unchanged at 10 percent for the January-June period of 2025