Dhaka, July 12 -- Private sector credit growth in Bangladesh remained subdued in May, rising by only 7.17percent year-on-year, down from 7.57percent in April and significantly below the 10.35percent recorded in May 2023, according to the latest data from Bangladesh Bank.

The slowdown highlights growing investor reluctance amid mounting political uncertainty, tighter monetary policy, and rising interest rates.

This tepid growth follows a brief rebound in April after credit expansion had dipped below 7percent in March, underscoring the volatile and fragile state of private sector borrowing.Economists attribute this sluggish momentum to a combination of domestic challenges and global headwinds.

One of the clearest indicators of the private ...