Bangladesh Bank will unveil its new monetary policy by the end of July, signalling a shift from its current contractionary stance in a bid to spur economic growth while still reining in inflation.

Sources indicate the central bank is preparing modest adjustments to the policy interest rate under International Monetary Fund (IMF) guidance.

Business leaders are, however, pinning their hopes on a more investment-friendly regime of lower lending rates and continued political stability.

Monetary policy is the primary lever for steering a nation’s economic course, fostering development, taming inflation and regulating money supply over a given period.

For the first half of the current fiscal year, Bangladesh Bank is fine-tuning its strategy to strike a delicate balance between curbing inflation and reviving private investment.

Business leaders have long argued that the prevailing tight policy has dampened investment, a situation worsened by recent political uncertainty.

DCCI President Taskin Ahmed said, "We hope the upcoming monetary policy will be more business-friendly and geared towards increasing credit flow. We are looking for a more lenient monetary policy, particularly hoping for a reduction in the interest rates that have risen significantly.”

To contain soaring consumer prices, the central bank previously raised its policy rate from 8.5 per cent to 10 per cent. Although the move helped ease inflation, it also choked off investment momentum.