Inflation rate will fall in Sept, we will reduce interest rate: BB Governor

Bangladesh Bank Governor Dr Ahsan H Mansur has hoped that the inflation rate in the country will fall by 7 percent in September and we will reduce interest rate.

He said this at a post-budget press conference in the capital’s Osmani Memorial Auditorium on Tuesday (June 3). 

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.

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.