2026-08-02

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MPD Circular No. 02: Re-fixation of Interest Rate Corridor (IRC)

The Interest Rate Corridor has been re-fixed for all scheduled banks and financial companies operating in Bangladesh. The Policy Rate has been reduced by 50 basis points from 10.0 percent to 9.50 percent, and the Standing Lending Facility (SLF) rate has been reduced by 50 basis points from 11.50 percent to 11.0 percent. The Standing Deposit Facility (SDF) rate remains unchanged at 7.50 percent. These changes are effective from 02 August 2026.

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Bangladesh Bank Head Office, Dhaka. website: www.bb.org.bd Monetary Policy Department MPD Circular No. 02 Date: 02 August 2026 18 Shrabon 1433 Managing Director/Chief Executive Officer/ All Scheduled Banks and Financial Companies operating in Bangladesh. Subject: Re-fixation of Interest Rate Corridor Dear Sir/Madam, Your attention is drawn to MPD Circular No. 01 regarding the Interest Rate Corridor issued on 09 February 2026. 02. In accordance with the decision of the Monetary Policy Committee (MPC) meeting held on 30 July 2026, with the aim of creating employment and strengthening economic recovery through increased credit flow and investment in the private sector, the Policy Rate ( ) has been re-fixed by reducing it by 50 basis points from the existing 10.0 percent to 9.50 percent, and the upper limit of the Interest Rate Corridor, the Standing Lending Facility (SLF) rate, has been re-fixed by reducing it by 50 basis points from the existing 11.50 percent to 11.0 percent. However, the lower limit of the Interest Rate Corridor, the Standing Deposit Facility (SDF) rate, has been kept unchanged at the existing 7.50 percent. 03. The aforementioned decision will be effective from 02 August 2026. Yours faithfully, (Dr. Mohammad Monirul Islam Sarker) Director (MPD) Phone: 9530059