Bangladesh, Oct. 1 -- Inflation-upturn fear keeps the central bank tightfisted on money supply as the key policy rate of interest is kept pegged at 9.5 per cent for emerging external and internal risk factors.

The Middle East crisis, higher energy prices and fiscal pressure practically pose uncertainty about continuation of downward inflationary rate.

In its latest policy update, the Bangladesh Bank (BB) has kept the policy rate unchanged at 9.5 per cent for the October-December quarter, citing persistent inflation risks, elevated global energy prices and uncertainty stemming from the disruption in the Strait of Hormuz.

The central bank said the moderation in headline inflation does not yet provide evidence of durable disinflation. El...