controlling inflation
Reducing inflation is now the biggest challenge
In the first six months of the ongoing fiscal year 2024-25, Bangladesh Bank has announced a new monetary policy while keeping the policy interest rate unchanged. Additionally, the central bank has eased restrictions on opening import letters of credit. As a result, it is expected that the upward trend in bank loan interest rates will significantly slow down. These measures have been taken at a time when inflation in Bangladesh has reached an alarming level.
Will high inflation come under control anytime soon?
The current national budget has given special importance to controlling high inflation. Despite efforts over the past one and a half years, inflation remains unmanageable. The budget has set a target to bring down the inflation rate to 6.5% within the current fiscal year. However, most economists in the country believe this target is unattainable given the current state of the economy. They predict that even if inflation does not rise further, it is unlikely to fall below 9% anytime soon. Finance Minister Abul Hassan Mahmud Ali mentioned in a post-budget press conference that inflation would decrease within the next six months, but did not specify how this target would be achieved. A new monetary policy for the first six months of the current fiscal year is expected to be announced soon, and it is certain that controlling high inflation will be a priority. However, it is unlikely that inflation can be brought to a tolerable level through monetary policy alone.
Money laundering threatens to render development meaningless
Former State Minister for Planning, eminent economist Dr. Shamsul Alam expressed his concern over money laundering while delivering a keynote speech at a seminar organized by the Bangladesh Agricultural Economists Association on June 20. The seminar's theme was "Bangladesh's Economy in the Global Context: Growth, Inflation, Food, and Nutrition." Dr. Shamsul Alam stated that each year, 7 to 8 billion US dollars are being laundered from Bangladesh. He identified money laundering as a significant reason behind the ongoing foreign currency reserve crisis in the country. The former State Minister also mentioned that money laundering is creating complex problems for the country's economy.
ISPR requests not to get misled by rumours over security of St. Martin’s
Inter Services Public Relation Directorate (ISPR) has urged all not to be misguided by rumours spreading through social media over the security of St. Martin’s island centering Myanmar's ongoing internal conflict near the island.
Inflation will begin to decline by end of this year: FM
Finance Minister Abul Hassan Mahmood Ali on Friday said the country must wait for 6 months to bring inflation under control.
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