Staff Reporter :
The government is intensifying efforts to bring down inflation to a stable range of 3-4percent, as part of its broader push for long-term macroeconomic stability, said Bangladesh Bank Chief Economist Mohammad Akhtar Hossain on Wednesday.
Speaking as the chief guest at a seminar titled “Bangladesh Monthly Macroeconomic Insights”, organised by the Policy Research Institute (PRI) in Dhaka, Akhtar Hossain acknowledged that current inflation, hovering between 8-9percent, remains “uncomfortably high” for households and businesses.
“Therefore, a tight monetary policy stance will be maintained until inflation moderates to a more sustainable level,” he said.
He explained that Bangladesh Bank is committed to deploying all available policy tools to restore stability.
This includes stricter liquidity management, ensuring interest rates reflect market realities, and curbing excessive credit growth.
“Our ultimate objective is to anchor inflation expectations and safeguard purchasing power, while also creating a foundation for growth,” he added.
The economist stressed that keeping inflation consistently at 3-4percent is not just a short-term goal but a long-term commitment that will strengthen the country’s competitiveness and economic resilience.
Beyond monetary tightening, Akhtar Hossain emphasised the importance of increasing both domestic and foreign investment.
He noted that Bangladesh’s existing savings rate is not sufficient to finance the scale of infrastructure and industrial expansion needed to achieve higher growth.
“Large-scale investment cannot be achieved through domestic resources alone. We must attract greater foreign direct investment (FDI), and for that, a business-friendly environment and political stability are absolutely essential,” he said.
Experts at the event agreed that stable prices, predictable policies, and reliable infrastructure are key to encouraging multinational firms to invest in Bangladesh, especially as the country prepares for its LDC graduation in 2026.
The discussion, chaired by PRI Executive Director Khurshid Alam, featured insights from PRI Director Ahmed Ahsan, former NBR chairman Md Nasir Uddin, Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury Parvez, and technology entrepreneur Habibullah N Karim.
The keynote paper, presented by PRI Chief Economist Ashikur Rahman, highlighted the need for structural reforms in taxation, trade facilitation, and energy pricing to complement monetary policy efforts. Without such reforms, experts cautioned, inflationary pressures could re-emerge.
The seminar underscored a central message: tackling inflation requires coordinated policies across fiscal, monetary, and investment domains to ensure that economic stability is preserved without undermining growth momentum.
