NN Online:
With inflation remaining high in Bangladesh, the International Monetary Fund (IMF) has advised the country to persist with increasing its policy interest rates until inflation shows signs of reduction.
Bangladesh Bank Spokesperson and Executive Director Husne Ara Shikha hinted this while talking to reporters at her office on Tuesday.
She said this ahead of a delegation led by IMF mission Chief Chris Papadakis, scheduled to visit Bangladesh from December 3 to 17 to review the IMF conditions.
The IMF says that inflation in Bangladesh is currently above 11 per cent. It will remain around 10 per cent throughout 2025, and after that, the international donor agency believes it may come down to 6 to 7 per cent.
The fourth tranche of the $4.7 billion loan program depends on fulfilling the conditions given by the global lender.
The IMF imposed conditions on Bangladesh for providing this loan.
Although almost all the conditions given by the lender are on track to be met, it is well behind the revenue collection target. However, the installment has already been released after showing progress in fulfilling most of the conditions.
Earlier, in January 2023, the IMF approved a $4.7 billion loan for Bangladesh. It was supposed to provide this loan to Bangladesh subject to conditions.
The IMF delegation is reviewing each installment of this loan, which was given in seven installments, before releasing it.
