Economy never return to forced single digit interest rates again: BB Governor

January 28, 2026

Bangladesh Bank Governor Ahsan H. Mansur, ICCB President Mahbubur Rahman and business leaders speak at a roundtable organized by ICCB in the city on Tuesday.

Business Report :

The country’s economy will never return to normal with the questionable single digit interest rates of 9 per cent -6 per cent, said Bangladesh Bank governor Dr. Ahsan H. Mansur.

Mansur also acknowledged that “Interest rates are currently high but, Single-digit rates have historically been rare in Bangladesh. Between $20 billion and $25 billion had been drained from the banking system, leading to a rise in non-performing loans and inevitable tightening.”

He made these comments at the “ICC Round Table on Implications of LDC Graduation for Banking Industry: Bangladesh Perspective” program held at a hotel in the capital on Tuesday.

The event, moderated by ICC Bangladesh President Mahbubur Rahman, was attended by business leaders and bankers, many of whom argued in favour of delaying Bangladesh’s graduation from Least Developed Country (LDC) status.

The governor claimed that vested interest groups have become major obstacles to banking sector reforms. The “Bangladesh Bank Order” has been stuck in the Finance Ministry for the past four months, with no progress.

“Several laws had been sent to the interim government, including the Bank Resolution Ordinance and the Deposit Insurance Ordinance, both of which have already been passed.These laws have enabled the merger of five banks and initiated the liquidation process of nine NBFIs,” he informed.

Bangladesh Bank Governor criticized the role of business organizations during the previous Awami League government, saying they acted “like puppets” and failed to speak out on key economic issues.
” When money was being siphoned off abroad, they remained silent. If business bodies behave like this, democracy can never become strong,” he added.
At the event, AKA Azad, vice president of the International Chamber of Commerce Bangladesh, Azad said that inflation cannot be controlled by tightening monetary policy alone.
AK Azad who also the Managing Director of Ha-Meem Group of Industries claimed that due to the tight monetary policy, about 1.2 million people have already lost their jobs and another 1.2 million people may lose their jobs in the next six months.
He said that the private sector has taken only 6 per cent of loans from banks, while the government has taken 27 per cent -which could reach 32 per cent in the future.
He also commented that the economy cannot be managed through monetary policy alone without increasing investment and employment.