The Dhaka Chamber of Commerce and Industry (DCCI) has expressed concern that Bangladesh Bank’s latest monetary policy does not align with the government’s growth-oriented fiscal measures, warning that the lack of coordination could limit private investment and industrial expansion.
In its reaction to the Monetary Policy Statement (MPS) for July–December 2026, the country’s leading trade body said the national budget for FY2026-27 introduced a range of tax and duty incentives to encourage business expansion, attract private investment and accelerate industrialisation.
However, the DCCI said these pro-growth fiscal initiatives are not reflected in the central bank’s monetary policy, indicating insufficient coordination between fiscal and monetary authorities.
Bangladesh Bank unveiled the new monetary policy on Tuesday, keeping the policy rate unchanged at 10% as part of its continued efforts to curb inflation, which has remained above 8% on average over the past four fiscal years.
The chamber described the decision as disappointing for the business community, particularly at a time when private sector credit growth declined to 5% in May 2026.
According to the DCCI, maintaining a high policy rate limits the banking sector’s ability to reduce lending rates, making access to affordable finance more difficult for businesses and constraining investment.
The chamber also noted that despite the central bank’s prolonged contractionary monetary stance, inflation has yet to fall to the desired level, raising questions about the effectiveness of the current policy approach.
At the same time, DCCI welcomed Bangladesh Bank’s announcement of a Tk 60,000 crore refinancing and incentive package aimed at supporting business recovery.
The business body stressed that the fund should be implemented transparently and efficiently, ensuring that cottage, micro, small and medium enterprises (CMSMEs), export-oriented industries and other productive sectors can access financing through simplified eligibility requirements, minimal documentation and faster approval procedures.
The chamber also voiced concern over the government’s increasing dependence on bank borrowing, noting that public sector credit is projected to grow by nearly 26% in June 2026, significantly exceeding the central bank’s target.
According to DCCI, higher government borrowing absorbs a substantial share of the banking system’s limited liquidity, reducing the availability of credit for private sector businesses.
The chamber concluded that fiscal incentives alone would have limited impact unless supported by adequate, timely and affordable financing, urging stronger coordination between fiscal and monetary policies to stimulate investment, industrial growth and sustainable economic development.
