News Desk :
The Bangladesh Bank (BB) is optimistic that inflation will ease in January. However, if inflation remains unchecked, further increases in the policy interest rate may be necessary.
Speaking at a discussion with journalists on Tuesday, Husne Ara Shikha, Executive Director and spokesperson for the central bank, emphasised BB’s efforts to curb rising prices through multiple policy rate hikes.
When asked about the slow growth in private sector credit, Shikha explained that credit expansion depends on factors beyond interest rates.
“Infrastructure development, energy supply, and port facilities all play a crucial role in enabling private sector growth,” she said.
Bangladesh’s private sector credit growth fell sharply to 7.66 per cent in November 2024, the lowest in 41 months, creating significant challenges for the banking sector and the broader economy.
BB data shows that credit growth has steadily declined for four consecutive months.
Shikha highlighted that while progress has been made in addressing financial vulnerabilities, achieving full economic stability will take time.
“We are committed to building a resilient and stable financial system, but patience is essential as this process unfolds,” she said.
Over the past five months (July-November 2024), BB has implemented several measures to stabilise the economy.
These include restructuring commercial banks, forming a specialised banking task force, stabilising the foreign exchange market, and introducing inflation control strategies.
“Some initiatives have already shown positive results, but others will take more time to manifest,” Shikha said, stressing the central bank’s long-term commitment to financial stability.
Addressing the issue of money laundering, Shikha revealed that the Bangladesh Financial Intelligence Unit (BFIU) had seized approximately 400 accounts by November 2024, following the recent political changeover.
“By the end of 2025, we aim to have a clearer understanding of how much money has been laundered, through which banks, and to which countries,” she stated, adding that recovering these funds would be a lengthy process.
She also noted that agencies responsible for fund recovery are working diligently but do not disclose details to the central bank for security reasons.
