Bangladesh Bank has decided to keep its policy interest rate unchanged, citing uncertainty stemming from rising fuel prices, persistent inflationary pressures and volatility in global energy markets.

The decision was taken at the 14th meeting of the Monetary Policy Committee (MPC) held at the central bank’s headquarters in Dhaka on Wednesday, chaired by Governor Mostakur Rahman.

According to the MPC, headline inflation has shown signs of easing but remains above the government’s target of 7.5% for fiscal year 2026-27.

The committee identified several risks that could place renewed pressure on consumer prices. These include the prolonged conflict in the Middle East, which continues to create instability in global energy markets, as well as the recent increase in domestic fuel prices.

The MPC also warned that the implementation of a new national pay scale for government employees could add further inflationary pressure by boosting demand in the economy.

Given these uncertainties, policymakers opted to maintain the current policy rate while closely monitoring both domestic and international developments before considering any adjustment.

The central bank said it would assess how these factors affect economic growth and inflation in the coming months, particularly their impact on gross domestic product (GDP) and the consumer price index (CPI).

The meeting was attended by Deputy Governor Dr. Habibur Rahman, economist Dr. Mustafa K. Mujeri, Bangladesh Institute of Development Studies Director General Dr. A.K. Enamul Haque, University of Dhaka Economics Department Chairperson Dr. Ferdousi Nahar, and Monetary Policy Department Executive Director Dr. Imam Abu Sayeed.