Bangladesh Bank has announced that it would keep its policy rate for the second half of the 2024-25 fiscal year unchanged at 10% till June 30 to reduce inflation.

Governor Ahsan H. Mansur made the announcement at a press conference on Monday (Feb 10) at the central bank. 

He said the contractionary monetary policy would continue from January to June to control inflation.

While talking to media the governor acknowledged that high inflation has been a persistent problem. Despite various measures, including higher interest rates, it has not been fully controlled. 

Ahsan H. Mansur assured that efforts are underway to bring inflation below 8% by June. To achieve this, the central bank is focusing on stabilizing the exchange rate and preventing further depletion of foreign currency reserves, which has already shown positive results.

When asked why inflation in Bangladesh is not decreasing like in Sri Lanka, the governor said, “Sri Lanka’s economy has collapsed. Ours has not. Inflation there rose to 60%, but that did not happen in Bangladesh.”

He emphasized that Bangladesh’s economic situation is not as bad as Sri Lanka or Pakistan, making such comparisons unreasonable.

BDST: 1929 HRS, FEB 10, 2025
MSK/SMS