Private sector credit growth in January fell to 7.15 per cent, marking the lowest in a decade, according to Bangladesh Bank data. The last time private sector credit growth was this low was in May 2021, during the COVID-19 pandemic, when it fell to 7.55 per cent. Economists warn that lower credit flow to the private sector will slow industrial expansion, reduce investments, and affect employment opportunities. Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, told bdnews24.com: "Lending is crucial for private sector growth and expansion. "Many entrepreneurs say they cannot afford high interest rates, which is another reason for the slowdown in private sector credit growth," Mahbubur Rahman said.

Source: bd News24 March 09, 2025 15:03 UTC