Monetary policy out of sync with govt’s fiscal measures: DCCI

The leading trade body said the government has offered various tax and duty incentives for fiscal year 2026-27 aimed at expanding businesses, encouraging private investment and accelerating industrialisation.

<div>However, these growth-oriented fiscal measures are not reflected in the new monetary policy, indicating a clear lack of coordination between fiscal and monetary policies, the DCCI said in its reaction to the monetary policy for July-December 2026 yesterday.</div><div><br></div><div>The Bangladesh Bank (BB) unveiled the policy at a press conference at its headquarters yesterday, keeping the policy rate unchanged at 10 percent to tame persistent inflation, which has remained above 8 percent on average for four years since fiscal year 2022-23.</div>

<div>The DCCI said that despite private sector credit growth falling to 5 percent in May 2026, the decision to keep the policy rate unchanged is “highly disappointing for the business community”.</div><div><br></div><div>It said maintaining a high policy rate continues to limit the scope for reducing the cost of borrowing for businesses.</div><div><br></div><div>The chamber said inflation has not been brought down to the desired level even though the authorities have been pursuing a contractionary monetary policy.</div>