Bangladesh, July 31 -- Bangladesh Bank has reduced the policy rate by 50 basis points to 9.50 per cent just a month after announcing a cautious and contractionary monetary policy aimed at inflation combat.

Advertisement Amid cries from business circles, the central bank makes the downward adjustment in its benchmark rate in 22 months notwithstanding inflation remaining elevated.

The new rate will come into effect from August 2, according to a press release issued by the central bank following a meeting of the Monetary Policy Committee (MPC) held Thursday.

The central bank said the committee extensively reviewed domestic and global inflation trends alongside investment, private-sector credit growth, employment, economic growth and the ...