Financial reforms needed to achieve macroeconomic stability: WB country director

Bangladesh needs to reform its financial sector in a variety of areas including exchange rate policy, inflation, and monetary policy, to achieve macroeconomic stability, said World Bank Country Director for Bangladesh Abdoulaye Seck on Wednesday (4 October).

He told reporters after a courtesy meeting with Planning Minister MA Mannan in Dhaka that Bangladesh has already implemented some reforms. "Banking sector has been reformed and the interest rate cap has been lifted."

He further said the World Bank will continue supporting the reform programmes in Bangladesh.

"Along with the reforms, investment should be made for the people. Investments must be made to protect people from climate impacts," said the World Bank country director.

The planning minister said reforms are an ongoing process. The World Bank has expressed satisfaction with the reforms implemented by the government so far. "However, they want more reforms," he said.

"Both the government and the World Bank believe that development will continue if the social and political environment is good in the coming months," he added.

The minister also said that inflation did not increase in September, this is a relief for us. The government is doing everything necessary to reduce inflation. It will come down to 5%-6% by the end of this year.

"The World Bank has suggested further expansion of incentive programmes for low-income groups to combat inflationary shocks. They have said that it will provide more support to improve the quality of life of the Rohingya people," said the planning minister.

Earlier, the World Bank provided $100 million in assistance in this sector, he added.