Staff Reporter :
Bangladesh Bank has informed the International Monetary Fund (IMF) that it will consider reducing the policy rate once inflation falls below 8 per cent.
Governor Ahsan H Mansur conveyed this message during a meeting with the visiting IMF delegation in Dhaka on 6 April, according to central bank spokesperson Arif Hossain Khan.
“In response to the IMF’s inquiry, the governor mentioned that inflation is projected to decline to 8.2 per cent by June, based on estimates from both Bangladesh Bank and the IMF,” Khan stated.
While the IMF team expressed concerns about the country’s revenue collection, they also acknowledged the progress made through the central bank’s ongoing reform initiatives, the spokesperson added.
Later in the day, the delegation held separate discussions with various departments of Bangladesh Bank. One key session focused on the liquidity conditions of domestic banks.
“The IMF specifically sought updates on the liquidity status of 12 banks. The governor explained that after implementing liquidity support measures, only five banks remain under stress, while the rest have regained stability,” said Arif.
When asked about the method of liquidity support, the governor noted that it was provided through promissory notes-a written financial commitment by one party to pay a fixed amount to another. However, the IMF expressed reservations about this approach, he added.
The delegation also inquired whether the banks experiencing liquidity issues are still issuing loans.
“The governor clarified that these banks have stopped issuing standard loans but continue to extend limited credit, primarily targeting SMEs and the agriculture sector, through various refinance schemes provided by the central bank,” the spokesperson explained.
He further noted that topics such as non-performing loans, foreign exchange reserves, and the exchange rate were not covered in today’s meeting.
Meanwhile, Finance Adviser Dr. Salehuddin Ahmed stated that the IMF has expressed satisfaction with the recent positive developments in Bangladesh’s economic landscape.
“The IMF team is encouraged by the progress, citing the country’s economic stability and promising trajectory,” the adviser told reporters after meeting the delegation at the Secretariat.
