Bangladesh Bank (BB) is set to release its Monetary Policy Statement (MPS) for the October-December 2026 quarter on Wednesday, marking the first time the central bank has shifted from a six-month to a quarterly monetary policy cycle. The announcement will take place at a 3:00 p.m. press conference at BB headquarters, with Deputy Governor Md Habibur Rahman presiding.

This move toward quarterly monetary policy updates aims to enhance the central bank's ability to respond to rapidly changing domestic and global economic conditions. The MPS was originally published annually before transitioning to a half-yearly schedule. The International Monetary Fund (IMF) had advised adopting a quarterly framework more than a year ago to increase the transparency and effectiveness of monetary policy.

The change was also supported domestically: Nationalist Congress Party Member of Parliament Hasnat Abdullah proposed the quarterly announcement during a parliamentary standing committee meeting on the Ministry of Finance in late July. Around the same time, a BB policy panel endorsed the revision, emphasizing the need for improved timeliness and adaptability in addressing economic fluctuations.

Since October 2024, the central bank had maintained its policy rate at 10 percent but cut the rate in July this year to 9.5 percent, marking the first reduction in six years. This decision was part of the central bank’s effort to balance easing inflationary pressures while supporting economic growth.

Inflation has been easing in recent months but remains elevated. The consumer price index fell to 8.26 percent in August, its lowest level in 10 months and the third consecutive month of decline after reaching a high of 9.42 percent in May. The July MPS had projected inflation to moderate to 8.9 percent by the end of 2026 and further decline to 8.6 percent by mid-2027. However, these projections remain above the government’s target ceiling of 7.5 percent for fiscal year 2027.

The shift to quarterly policy statements is expected to provide more timely guidance to markets and stakeholders, allowing Bangladesh Bank to better navigate the challenges posed by economic volatility both domestically and abroad.