BB aims to cut inflation to 5pc: Governor

Staff Reporter :

The central bank is aiming to bring inflation down to 5per cent, a more ambitious target than the government’s official goal of 6.5per cent, Bangladesh Bank Governor Dr Ahsan H Mansur said on Tuesday.

“If we can achieve this, we will consider ourselves successful,” he made the remarks at the launch event of Google Pay in Bangladesh, held at a city hotel.

While speaking about current state of the financial sector, the governor said risk-based audits have been completed for 20 banks, with another 7 expected to be finalized by the end of July. “Under no circumstances will the banking sector be allowed to return to its previous state.”

On the exchange rate of the US dollar, Mansur remarked, “The price of our country’s dollar will not be determined from Dubai. That is why the dollar has been released into the market.”

Meanwhile, in a press release issued on 23 June, International Monetary Fund (IMF) projected annual average inflation may be 6.2 percent in FY26, down from 9.9 percent in the outgoing FY25.

The agency had earlier projected 5.18 percent inflation for the FY26, in the World Economic Outlook published in April.

However, The IMF has revised downward its economic growth projection for Bangladesh for the fiscal year 2025-26, citing persistent political uncertainty, continuation of a tighter policy mix, rising trade barriers, and increasing stress in the banking sector according to the press release.

IMF has revised downward its economic growth projection for Bangladesh for the fiscal year 2025-26, citing persistent political uncertainty, continuation of a tighter policy mix, rising trade barriers, and increasing stress in the banking sector.

The economy is expected to grow by 5.4 percent in the next fiscal year, down from the previous forecast of 6.5 percent for the same period, according to the Washington-based multilateral lender.