Bangladesh Bank (BB) governor Abdur Rouf Talukder today hoped that the general point to point inflation in the country is likely to ease within the next two to three months.

He said: "I hope that the inflation will ease within the next two to three months."

The central bank governor was responding to queries of reporters at the opening ceremony of the two-day Annual Banking Conference, organised by the Bangladesh Institute of Bank Management (BIBM), in the capital's Mirpur area.

The reasons for the current situation are international in nature and it is difficult to make adjustments without unintended consequences, he said.

"The current inflation is due to imports. We've to import oil and fertiliser. The price of oil has gone up. We are trying to buy fertiliser through alternate means. The steps that the government and Bangladesh Bank have taken will lead to a better situation," he added.

Abdur Rouf Talukder responded that the government and Bangladesh Bank's efforts to increase domestic supply and rein in inflation would bear better results in the coming months.

Amid surging consumer prices, many economists have recently suggested removing the nine percent cap on the lending interest rate.

"If the limit on the interest rate is removed, it will increase costs for entrepreneurs. It will also increase the costs of managing funds for banks. We want to give entrepreneurs loans at lower rates so that the production costs stay low," added Talukder.

The governor put emphasis on proper bank management at the event. Banks are not just about making profits, but must also ensure that they are run properly, or else they risk harming the entire sector, he added.

BDST: 1941 HRS, AUG 27, 2022
MN/SMS