"He also added that high interest rates are making borrowing difficult to maintain business operations.Bankers echoed similar views, stressing that private sector entrepreneurs are refraining from undertaking new investments or expanding existing businesses, resulting in a slowdown in large-scale bank loan disbursements. However, actual credit growth has already fallen below this target.In February, during the announcement of the monetary policy, Bangladesh Bank Governor Ahsan H Mansur said that the policy interest rate would remain at 10 percent until inflation declined. Accordingly, once inflation was under control, the rate would be lowered.The central bank data shows that private sector credit growth began to decline after political unrest erupted in July last year, triggered by the movement for quota reform in government jobs.The Awami League government was toppled on Aug 5 last year, and from that month onwards, credit growth in the private sector began to fall. In July, the month the protests began, credit growth was at 10.13 percent. In September, growth fell to 9.20 percent -- the lowest in three years.

Source: bd News24 June 12, 2025 17:30 UTC