Inflation can be reduced to 4-5% with policy consistency: BB governor
"If we print money and complain that inflation isn't decreasing, it won't work. We must maintain a strict position on this issue," says Ahsan H Mansur
Highlights:
- Governor says printing money and complaining that inflation isn't decreasing won't work
- Says inflation can be reduced to 4-5% with policy consistency
- Bangladesh Bank aims to increase women's financial inclusion
- Governor says women receive only 6% of total bank loans, deems it unrealistic
- Says loans to women should come from banks' own funds, not new money.
Inflation in Bangladesh is decreasing. Bringing it further down to 4-5% is achievable with government efforts and policy consistency, Bangladesh Bank Governor Ahsan H Mansur has said.
"If we print money and complain that inflation isn't decreasing, it won't work. We must maintain a strict position on this issue. We are working from that standpoint. It's taking some time for inflation to decrease, but it will gradually come down," he said at the inauguration ceremony of the Banker-Women Entrepreneur Conference and Product Showcasing Fair held at the Bangla Academy premises in the capital today (8 May).
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During his speech as the chief guest, Ahsan H Mansur said, "Food inflation in the country was 14.5%. Now it has come down to 8.5%. Non-food inflation was over 12.5%, and now it's slightly above 9%. I am hopeful this will decrease further gradually."
"If we make efforts and maintain policy stability, bringing inflation down to 4-5 percent is not impossible. And that would be an acceptable solution for everyone," he added.
"Women are not receiving the constitutional rights they are entitled to in reality. There are many obstacles women face when obtaining loans. We must try to find ways to advance women's progress," said the governor.
"Our mothers and sisters were married at a young age, but in the current reality, that is not appropriate. Women need to be brought out of the kitchen — we need a major change in this mentality. Because we all have mothers, sisters, and daughters," he added.
Mansur said, "Currently, women receive only 6% of total loans in the banking sector, which is not at all realistic. We need to take initiatives to increase their loans. At the same time, we need to enhance their financial literacy or financial awareness."
"We will provide loans to women entrepreneurs, but not just by increasing the central bank's funds, because giving from there requires creating new money. Loans to women should come from the banks' own funds, considering their rights," he added.
The event was organised by Bangladesh Bank's SME & Special Programmes Department to ensure greater participation and financial inclusion of women entrepreneurs in the CMSME sector.
It was attended by Bangladesh Bank Deputy Governor Nurun Nahar, Executive Director Md Khasru Parvez, City Bank MD and CEO Mashrur Arefin, and Bangladesh Bank's SME and Special Programmes Department Director Nawshad Mustafa.
The four-day fair will continue until 11 May. Sixty-eight women entrepreneurs from various districts have brought their products to the fair.
On the final day, six women entrepreneurs will be honoured.
