The Bangladesh Bank on Thursday cut its policy rate to 9.5 percent from 10 percent, marking the first reduction after October, 2024.

The decision was taken at a meeting of the central bank's Monetary Policy Committee (MPC), chaired by Bangladesh Bank Governor Md Mostaqur Rahman, on Thursday. 

The revised policy rate will take effect on August 2.

Before reaching the decision, the committee reviewed key domestic and global economic indicators, including inflation, private sector credit, investment, employment, economic growth, and the country's balance of payments.

According to the MPC, recent economic developments indicate that inflation has moderated, creating room for the central bank to begin easing its tight monetary policy stance.

The committee also reduced the Standing Lending Facility (SLF) rate by 50 basis points to 11 percent from 11.5 percent. 

However, it left the Standing Deposit Facility (SDF) rate unchanged at 7.5 percent.