Dhaka: Bangladesh Bank Governor Dr Ahsan H Mansur today expressed optimism that the inflation rate in the country would decrease further, surpassing 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 stated at a post-budget press conference at Osmani Memorial Auditorium in the capital.
According to Bangladesh Sangbad Sangstha, Dr Mansur highlighted that stabilizing the exchange rate was crucial in controlling inflation, and noted significant improvements in this area. ‘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 remarked.
The governor also noted significant reductions in both food and non-food inflation, with food inflation dropping to around 8.5% and non-food inflation declining to just over 9%. ‘I believe this downward trend will continue further,’ he said. He pointed out that oil and gas prices in the international market are not expected to rise, and emphasized Bangladesh’s enhanced export capacity and the central bank’s tight monetary policy as pivotal factors.
Dr Mansur expressed confidence that these combined efforts would bring inflation below the budget target. Finance Secretary Md Khairuzzaman Mozumder revealed that the proposed budget has reduced the target for bank borrowings to avoid crowding out, setting it at Taka 1,04,000 crore. He mentioned the government’s intention to pursue alternate borrowings from non-banking sectors.
NBR Chairman Md Abdur Rahman Khan addressed questions regarding the Labour Welfare Fund, assuring that no new tax has been imposed on it.