Policy rate to be lowered if inflation <8%, Bangladesh Bank to IMF

Bank spokesperson Arif Hossain Khan said this after a meeting between governor Ahsan H Mansur and a visiting IMF delegation led by Bangladesh mission chief Chris Papageorgiou.

The governor noted during the meeting that inflation is expected to come down to 8.2 per cent by June, according to projections from both the central bank and the IMF.

Following liquidity support measures, only five banks out of 12 are facing a liquidity crisis now, while the others have recovered, he told the delegation.

While banks facing liquidity challenges have ceased issuing regular loans, they are offering limited lending-primarily to small and medium enterprises of the agriculture sector-under various refinance schemes facilitated by the central bank, the central bank governor was cited as saying by domestic media outlets.

ALCHEMPro News Desk (DS)