Inflation to fall further: BB Governor

BSS
Published On: 03 Jun 2025, 20:18
Bangladesh Bank Governor Dr Ahsan H Mansur -File Photo

DHAKA, June 3, 2025 (BSS) – Bangladesh Bank Governor Dr Ahsan H Mansur today hoped that the inflation rate in the country would fall further against the target set in the proposed national budget for the fiscal year 2025-26.

“This budget (FY26) has aimed to maintain average inflation at 6.5%. I personally think the inflation should decline even further,” he said at a post-budget press conference in the capital’s Osmani Memorial Auditorium. 

The governor highlighted that the exchange rate was one of the major challenges in curbing inflation, adding that the situation has already improved significantly. 

“The exchange rate has remained stable at around Taka 122-123 per US dollar for a considerable time now. This has brought us a sense of relief and increased our confidence,” he added.

He further noted that the food inflation has dropped from double digits to around 8.5%, while non-food inflation has declined from 11.5% to just over 9%. “I believe this downward trend will continue further,” he said.

Dr Mansur also pointed out that the 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.
Finance Secretary Md Khairuzzaman Mozumder said that the target for bank borrowings in the proposed budget has been cut from the original plan to avoid crowding out.

He informed that such target has been kept at Taka 1,04,000 crore in the next budget side by side the government is also cautious in this regard and thus would pursue for alternate borrowings like from non-banking sectors.

Replying to a question, NBR Chairman Md Abdur Rahman Khan said that no new tax has been imposed on the Labour Welfare Fund.
 

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