Bangladesh Bank has maintained its contractionary monetary stance for the first half of fiscal year 2026–27, keeping the policy rate unchanged at 10 percent due to inflation remaining above target. The central bank reduced the private sector credit growth target to 6.8 percent and announced a 600 billion taka stimulus package to revive economic activity. The new policy was unveiled by Governor Mostakur Rahman at the bank’s headquarters, with senior officials in attendance.

The statement noted that inflationary pressure rose again in the second half of 2025–26 due to fuel price adjustments, flood-related agricultural losses, and higher global commodity prices linked to the Iran conflict. Bangladesh Bank forecasted 6.1 percent GDP growth for the coming fiscal year, while the government set a 6.5 percent target. Real GDP growth in 2025–26 was 4.14 percent, showing modest recovery but still weak momentum.

The bank also introduced an 18‑month plan to reduce non‑performing loans, proposed new financial laws for faster case resolution, and capped the interest rate spread at four percent to improve banking discipline and competitiveness.

The Bangladesh Parliament on Tuesday passed the national budget for the 2026–27 fiscal year, amounting to Tk 9.38 trillion. The passage was completed through approval of the Appropriation Bill 2026, presented by Finance Minister Amir Khosru Mahmud Chowdhury. The budget takes effect from July 1, following presidential consent and gazette publication. The session, chaired by Speaker Hafiz Uddin Ahmed, approved the budget by voice vote after ministers defended expenditure proposals for 59 ministries.

The new budget, titled “Journey Toward a Democratic, Humane, and Inclusive Economy,” is the country’s 55th and the finance minister’s first. It is 18.73% larger than the previous year’s budget and targets 7.5% inflation and 6.5% GDP growth. The budget sets a deficit of Tk 2.43 trillion, to be financed through domestic and foreign borrowing. Revenue collection is targeted at Tk 6.95 trillion, with an Annual Development Programme of Tk 3 trillion.

Opposition lawmakers raised 1,343 cut motions and called for greater transparency and accountability in project implementation. They also demanded efficient use of funds and reduction of waste, while the government incorporated 64 amendments, including higher tax-free income limits and revised VAT measures.

The Bangladesh National Parliament has passed a budget of Tk 9.38 trillion for the 2026–2027 fiscal year. The new budget is Tk 1.48 trillion larger than the current fiscal year’s Tk 7.90 trillion budget. Finance Minister Amir Khasru Mahmud Chowdhury presented the proposal during Tuesday’s parliamentary session, which was approved by voice vote under the chairmanship of Speaker Hafiz Uddin Ahmed Bir Bikrom.

Before the budget’s passage, 59 expenditure demands from various ministries and divisions were presented, and 1,344 cut motions were submitted by members of parliament. These motions were discussed and resolved through voice votes. The Finance Bill, which includes raising the tax-free income limit to Tk 400,000, was also passed.

The budget, originally proposed on June 11, 2026, follows extensive discussions among ruling, opposition, and independent lawmakers. It will take effect on July 1, 2026.

The government of Bangladesh has decided to keep the prices of diesel, kerosene, octane, and petrol unchanged for July 2026. However, the price of furnace oil used in power plants has been reduced by 4.44 taka per liter, from 113.54 to 109.10 taka. The Energy Division and Bangladesh Energy Regulatory Commission (BERC) announced the new rates in separate notices, effective from July 1 to July 31.

According to the Energy Division, the unchanged retail prices are 115 taka per liter for diesel, 145 taka for octane, 140 taka for petrol, and 135 taka for kerosene. The adjustment follows a decline in global oil prices after an Iran–United States memorandum of understanding to end the war, which had earlier driven prices up by over 40 dollars per barrel. Officials explained that domestic pricing is based on a three-month average of international rates, and the benefits of the recent global decline may take a few months to reach consumers.

BERC stated that the furnace oil price revision considered changes in crude oil costs and exchange rates for May and June, with the new rate effective from midnight on June 30.

Bangladesh Bank has maintained a policy interest rate of 10 percent for over a year and a half, yet inflation has not fallen to its 7 percent target. The central bank’s 2025–26 monetary policy review states that despite various government and central bank measures, inflation remained high through June 2026. Weak market structures, supply chain disruptions, and global energy and commodity price pressures were cited as key reasons. Inflation fell from 10.89 percent in December 2025 to 8.49 percent but rose again to 9.42 percent in May 2026.

The review notes that inflation has persisted for more than three years, driven by global supply disruptions, the Russia-Ukraine war, and energy price shocks. Food, transport, and housing-energy sectors contributed most to rising prices, with transport inflation climbing to 9.86 percent and housing-energy inflation to 9.26 percent. Reduced fuel subsidies and higher gas and oil prices further increased production and transport costs.

Bangladesh Bank expects inflation to ease gradually in fiscal year 2026–27 if monetary tightening continues, supply conditions improve, and global price pressures subside. The new monetary policy, to be announced today, is expected to retain a cautious, contractionary stance with the policy rate unchanged at 10 percent.

Fortune Group has officially closed its Anan Shoes factory in Gazipur’s Sripur area, citing continuous financial losses and production disruptions. The company announced the shutdown after facing severe economic challenges linked to import-export complications. Over 300 employees were affected, with some reassigned to other Fortune Group units in Barishal and Dhaka. The company began operations in 2012 with 472 workers and expanded into a group of multiple shoe factories across Bangladesh.

Unnamed sources alleged that despite earning large profits, many employees had not received salaries for months, and the company’s chairman, Mizanur Rahman, allegedly laundered significant sums abroad while residing in Canada. However, a company official denied the money laundering claim, attributing the crisis to liquidity problems at Islami Bank that disrupted trade operations. Mizanur Rahman, who also holds political positions, declined to comment when contacted.

The closure has left many employees struggling financially, with several months of unpaid wages. The company has expressed hope that the situation will improve once financial constraints ease.

The Bangladesh Jewellers Association (BAJUS) has again reduced gold prices in the domestic market within 24 hours. In a notice issued on Tuesday morning, BAJUS announced that the price of 22-carat gold, including VAT, has been lowered by Tk 3,324 per bhori to Tk 221,966. The new rates took effect from 10 a.m. the same day. The association said the adjustment followed a decline in the price of pure gold in the local market.

According to the new pricing, 21-carat gold now costs Tk 211,993 per bhori, 18-carat gold Tk 182,075, and traditional gold Tk 148,774. BAJUS stated that these prices will remain effective until further notice, with design-based making charges applicable. VAT is included in the selling price, and customers cannot be charged separately. The association also mentioned that silver prices have been reduced by Tk 175 per bhori, setting 22-carat silver at Tk 4,491.

This marks the 84th gold price adjustment in 2026, with 41 increases, 42 decreases, and one VAT revision so far. Silver prices have been adjusted 51 times this year.

U.S. President Donald Trump has demanded that petrol stations and other fuel retailers immediately lower prices following a decline in global oil rates. In a post on Truth Social, Trump warned that retailers could face serious consequences if they fail to reduce prices for consumers. He noted that oil prices had dropped to 68 dollars per barrel and were continuing to fall, yet retail fuel prices remained high.

Trump emphasized that retailers must act quickly to adjust prices and avoid overcharging, which he described as illegal. His warning comes after a period of sharp increases in oil prices triggered by the U.S.-Israel war with Iran, during which Tehran closed the Strait of Hormuz, a key route for global energy supply.

Oil prices have since declined as Washington and Tehran signed a memorandum of understanding and moved toward a potential final agreement, easing market tensions and prompting Trump’s call for lower domestic fuel prices.

Bangladesh is facing a severe disparity in electricity supply between urban and rural areas, with rural residents enduring long hours without power while Dhaka remains largely unaffected. On Sunday, despite a national load shedding record of 3,280 megawatts, the capital experienced no outages. Protests erupted in several districts, where residents blocked roads and attacked power offices over frequent blackouts. In Jamalpur’s Madarganj, hundreds surrounded a local power station, citing disruptions to students’ studies.

According to the Power Division, national electricity demand reached 17,278 megawatts, but only 13,998 megawatts were supplied. While Dhaka’s utilities met full demand, rural areas under the Rural Electrification Board faced significant shortfalls. Officials reported that 65 percent of power plants remain idle, with gas and coal shortages limiting production. The government continues to pay high capacity charges for unused plants.

Energy Minister Iqbal Hasan Mahmud stated in parliament that production has improved to 14,500 megawatts against a demand of 14,839 megawatts and assured efforts to stabilize supply. Authorities are considering increasing output from oil-based plants to ease the crisis.

Bangladesh Bank has announced a special exit facility allowing defaulting borrowers to settle their dues in one payment with relaxed conditions for interest waivers. The circular, issued on Monday to all scheduled banks, aims to reduce non-performing loans and enhance banks’ capacity to issue new credit. The central bank stated that borrowers facing financial difficulties but still capable of operating their businesses and willing to repay will be eligible for this one-time exit option.

According to the circular, loans classified as substandard or bad up to June 30 of the current year will qualify for the facility, subject to board approval based on banker–customer relationships. The requirement for banks to recover their cost of funds before waiving interest has been eased, and both state-owned and private banks may now offer interest waivers. The policy also prioritizes short-term agricultural loans and CMSME sector loans.

The directive, issued under the Bank Company Act 1991, will remain effective until December 31. Bangladesh Bank expects the measure to help reduce bad loans and support production, investment, and employment growth.

Bangladesh’s foreign exchange reserves have risen above $37 billion for the first time in 45 months. As of Monday, the gross reserve stood at $37.05 billion, up from $36 billion last Wednesday. The last time reserves were above this level was in mid-September 2022, before declining steadily to $25.92 billion by August 2024, when the Awami League government fell.

According to the IMF’s BPM6 calculation method, reserves reached $32.48 billion, compared to $31.55 billion last Wednesday. The reserve crossed $31 billion after the Asian Development Bank disbursed a $1 billion loan on June 14. Bangladesh Bank began publishing reserves under the BPM6 system in June 2023, when the figure was $24.75 billion. The country’s highest reserve level was $48 billion in August 2021, before falling due to increased capital flight and a sharp depreciation of the taka from 84 to 120 per dollar.

Since August 2024, remittance inflows through banking channels have remained strong, totaling $35.34 billion by June 28 of the current fiscal year, up 17.62 percent from the same period last year, helping stabilize the foreign exchange market.

Bangladesh Bank has reinstated a maximum 4 percent spread between deposit and lending interest rates, aiming to reduce borrowing costs and support productive sectors. The directive, issued through a circular on Monday, excludes credit card and consumer loans. Currently, the average spread in the banking sector stands at 5.72 percent, with some banks maintaining spreads as high as 7 to 9 percent.

According to the central bank, many banks have sharply increased lending rates compared to deposit rates, widening the spread and negatively affecting business and industrial financing. The move seeks to bring lending rates to a reasonable level and ease financial pressure on borrowers. A bank collecting deposits at 8 percent interest will now be allowed to lend at a maximum of 12 percent.

The 4 percent cap had been lifted in November 2023 under an IMF-backed market-based interest rate system but has now been reinstated following recommendations from the central bank’s monetary policy committee, which cited high non-performing loans and excessive spreads as key concerns.

Jagannath University has approved a Tk 330 crore budget for the 2026–2027 fiscal year, showing a deficit of Tk 143.39 crore. The approval came during the university syndicate’s 112th special meeting held on June 29 under the chairmanship of Vice-Chancellor Professor Dr. Md. Raiqul Uddin. The syndicate also approved the revised budget of Tk 230.32 crore for the 2025–2026 fiscal year.

According to the approved figures, the 2026–2027 budget includes Tk 159.10 crore from the University Grants Commission (UGC) and Tk 27.50 crore from the university’s own income. Allocations include Tk 8 crore for research, Tk 60 crore for student scholarships, Tk 30 crore for temporary dormitory construction, and Tk 129.80 crore for salaries and allowances. The UGC has withheld allocations for research and vehicle purchases, while several other sectors received about 50 percent less than requested.

The syndicate recommended that the government, through the UGC, provide additional funding to cover the Tk 143.39 crore deficit. The university’s ongoing development project for a second campus has an estimated cost of Tk 1,746.06 crore, with Tk 201.21 crore allocated for 2026–2027.

Dhaka University has announced a proposed budget of Tk 1,033.21 crore for the 2026–2027 fiscal year, presented at the annual Senate session held on June 29, 2026, at Nabab Nawab Ali Chowdhury Senate Bhaban. The budget, presented by Treasurer Professor Dr. M. Jahangir Alam Chowdhury and presided over by Vice-Chancellor Professor Dr. A. B. M. Obaidul Islam, falls short by about Tk 390 crore compared to the university’s total demand. The University Grants Commission (UGC) has allocated no direct funds for research, creating an anticipated financial deficit of Tk 83.85 crore.

According to the treasurer, 66.73 percent of the university’s total financial requirement has been met, with Tk 949 crore from UGC grants and Tk 85 crore from internal income. The largest allocations are for salaries and allowances, consuming about 53 percent of the total budget. The administration warned that the lack of research funding and limited resources for libraries, laboratories, and student welfare will strain normal academic and research operations.

The UGC plans to change its policy by managing research funds directly instead of transferring them to universities, a move that may affect Dhaka University’s ability to ensure adequate research investment.

The Barishal City Corporation (BCC) has decided to maintain the previously set fares for three-wheelers operating within the city. The decision was made on Monday during a coordination meeting held at the city corporation office, chaired by BCC Administrator Advocate Bilkis Akter Jahan Shirin. Officials from the divisional and district administrations were present. The meeting also resolved to take strict legal action against unlicensed or non-renewed three-wheelers through joint drives.

The move follows widespread protests by students and passengers against excessive fare collection by three-wheeler and yellow auto-rickshaw drivers. Reports indicated that fares had nearly doubled on several city routes, prompting students to detain over a hundred vehicles near BM College. Despite earlier complaints and a memorandum submitted to the BCC, no action had been taken until the protests escalated.

During the emergency meeting, participants emphasized restoring order in the city’s transport sector through coordinated efforts. The BCC pledged to ensure compliance with licensing regulations and maintain passenger welfare by keeping fares unchanged.