Despite months of upward pressure on inflation, the central bank has lowered the policy interest rate. With this decision, Bangladesh Bank appears to be walking in the opposite direction of conventional economic strategy.
Data from the Bangladesh Bureau of Statistics shows that inflation stood at 8.71% in March, climbed to 9.04% in April, and rose further to 9.94% in May.
This marks two consecutive months with inflation exceeding 9%, well above the government's official target.
Despite these high inflationary conditions, the central bank has reduced the policy rate from 10% down to 9.50%. Simultaneously, the Standing Lending Facility (SLF) rate has been adjusted downward to 11%.