Dhaka, Feb. 10 -- The Dhaka Chamber of Commerce and Industry (DCCI) has expressed concern over Bangladesh Bank's decision to maintain a contractionary monetary policy for the second half of FY 2024-25, with the policy rate set at 10 percent.

Although this policy aimed to curb inflation, such a rigid stance is detrimental to private sector credit growth and economic expansion, it said. The private sector, which relies heavily on banks for investment, has been particularly impacted as high interest rates increased production costs, thereby fuelling inflation, according to a DCCI press release on Monday.

While inflation eased to 9.94 percent in January 2025 from 10.89 percent in December 2024, it remained above the desired target, it said....