Inflation expected to decline more than budget target: BB governor
The governor highlighted the exchange rate as one of the major challenges in curbing inflation, adding that the situation has already improved significantly.
Inflation rate in the country will fall more than the target set in the proposed national budget for the fiscal year 2025-25, Bangladesh Bank Governor Ahsan H Mansur said today (3 June).
"The budget has aimed to maintain average inflation at 6.5%. I believe inflation will decrease even further," he said at a post-budget press conference in the capital's Osmani Memorial Auditorium.
The governor highlighted the exchange rate as one of the major challenges in curbing inflation, adding that the situation has already improved significantly.
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"The exchange rate has remained stable at around Tk122-123 per US dollar for a considerable time now. This has brought us a sense of relief and increased our confidence."
He further noted that food inflation has dropped from double digits to 8.5%, while non-food inflation has decreased from 11.5% to just over 9%. "I believe this downward trend will continue," he said.
Mansur also pointed out that prices of oil and gas in the international market are not expected to rise further, while Bangladesh's export capacity has significantly improved. In addition, the central bank has maintained a tight monetary policy.
"These combined efforts will help bring inflation below the target set in the budget," he added.
