BB foresees inflation falling short of budget estimate

Staff Reporter :

Bangladesh Bank (BB) Governor Ahsan H Mansur expressed optimism that the country’s inflation rate will fall below the target outlined in the proposed national budget for the fiscal year 2024-25.

Speaking at a post-budget press conference held on Tuesday at the Osmani Memorial Auditorium in Dhaka, Mansur noted that while the budget aims to keep average inflation at 6.5 per cent, he expects it to decline further.

He identified the exchange rate as a key factor in controlling inflation, highlighting that the situation has improved markedly in recent months.
“The exchange rate has remained stable at around Tk122-123 per US dollar for a significant period, which has brought relief and boosted our confidence,” he stated.

Mansur also pointed out that food inflation has eased from double digits to 8.5 per cent, and non-food inflation has fallen from 11.5 per cent to just above 9 per cent. “I anticipate this downward trend will continue,” he added.

Additionally, the governor mentioned that global oil and gas prices are not expected to rise further, and Bangladesh’s export capacity has seen considerable improvement. Coupled with the central bank’s tight monetary policy, these factors are expected to help bring inflation below the budgeted target.