Staff Reporter :
Bangladesh Bank Governor Dr Ahsan H Mansur has stated that it will take an additional eight months to bring inflation down to a targeted level under current economic measures.
He reassured that the central bank has refrained from printing money over the last three months to prevent further inflationary pressures, emphasising this as essential for economic stability.
Dr Mansur made these remarks during his address at the Bangladesh Economic Conference, organised by the vernacular economic daily Bonik Barta, on Monday in the capital.
Bangladesh has been struggling with high inflation for nearly two years, with overall inflation staying above 9 percent since March 2023, significantly impacting low- and fixed-income populations.
In October 2024, inflation reached its highest level in three months, following a 9.92 percent increase in consumer prices in September and a 10.49 percent increase in August.
To address this, the central bank raised its key interest rate by half a percentage point to 10 percent last month, marking its fourth hike this year as it aims to curb persistently high inflation.
“We are actively implementing strategies to lower essential goods’ prices and aim to bring inflation down to around 5 to 6 percent,” Dr Mansur said.
He also acknowledged that some banks are struggling to meet customer payment demands, but assured that the central bank is providing support and remains optimistic about the sector’s future. “All necessary efforts are being made.
We expect to see a stable banking sector within the next two to three years.”
Bangladesh Bank has initiated an audit of the asset accounts of ten banks, with plans to extend this to other banks gradually.
Highlighting a unique aspect of the banking landscape, Dr Mansur pointed out that Bangladesh has the world’s highest banking density based on branch proximity.
Addressing gender inequality in the sector, he stated that steps are being taken to increase women’s representation across various sectors, including banking, to reduce disparities.
Dr Mansur also clarified that the recent appointment of a receiver for Beximco Group was to ensure its continued operation, not initiate its closure. Efforts are underway to repatriate smuggled funds, with bilateral agreements aiding in this process and some progress reported.
He also discussed the division of project expenditure into revenue and capital categories as outlined in the Detailed Project Plan (DPP) and Technical Assistance Project Performa (TAPP), including allocations under Direct Project Aid (DPA) and Reimbursable Project Aid (RPA).
Meanwhile, the newly appointed commerce adviser, Sheikh Bashir Uddin, also commented on inflationary pressures, stating that high inflation is forcing people to make compromises in their priorities.
He noted that although incomes have increased, purchasing power has not risen accordingly. Responding to a journalist’s question about controlling commodity prices, he said, “Every ordinary worker is having to compromise on priorities, including health, education, and even food.”
The adviser added that while he cannot perform miracles to control prices, he will work hard with others to bring them under control.
