BB Governor projects inflation reduction in 8 months

Bangladesh Bank Governor Dr Ahsan H Mansur has said that it will take an additional eight months to bring inflation to a targeted level under current economic measures.

He shared this projection during his address at the Bangladesh Economic Conference, organised by Bonik Barta, on Monday in Dhaka.

The Governor reassured that the central bank has refrained from printing money over the last three months to avoid inflationary pressures, a step he noted as essential for economic stability.

"We are actively implementing strategies to lower essential goods‍‍` prices and aim to bring inflation down to around 5 to 6 percent," he said.

Dr Mansur acknowledged that some banks are still struggling to meet customer payment demands.

However, the central bank is extending support to these banks and is optimistic about the sector‍‍`s future. "All necessary efforts are being made. We expect to see a stable banking sector within the next two to three years.”

Bangladesh Bank has also initiated an audit of the asset accounts of ten banks, with plans to gradually audit the remaining banks.

Highlighting a unique aspect of Bangladesh‍‍`s banking landscape, Dr Mansur pointed out that Bangladesh has the world‍‍`s highest banking density based on branch proximity.

The Governor addressed issues of gender inequality within the banking sector, stating that steps are underway to increase women‍‍`s representation across various sectors, including banking, in order to reduce disparities.

Dr Mansur also clarified that the recent appointment of a receiver for Beximco Group was not to initiate its closure but rather to ensure its continued operation. Efforts are going on to repatriate smuggled funds, including through bilateral agreements, with notable progress reported.

The Governor mentioned the division of project expenditure into revenue and capital categories, as specified in the Detailed Project Plan (DPP) and Technical Assistance Project Proforma (TAPP), according to project requirements.

This includes the allocation under Direct Project Aid (DPA) and Reimbursable Project Aid (RPA) as part of project support.