Bangladesh has made significant progress in curbing inflation, with the rate dropping from 14.5 per cent to 8.5 per cent over the past nine months, according to Bangladesh Bank Governor Dr Ahsan H Mansur.
Speaking as the chief guest at the opening ceremony of the Banker SME Women Entrepreneurs' Gathering, Product Exhibition and Fair held at Bangla Academy on Thursday, Governor Mansur expressed optimism that inflation could fall further – to 4 to 5 per cent – if consistent policy efforts are maintained.
“If we keep printing money and expect inflation to drop, that won’t work. We need to adopt a strict stance,” he said. “Inflation will take time to ease, but it is on the right track and will continue to decline gradually.”
According to Dr Mansur, food inflation – which peaked at 14.5 per cent – has now dropped to 8.5 per cent, while non-food inflation has fallen from above 12.5 per cent to just over 9 per cent.
The latest data from the Bangladesh Bureau of Statistics (BBS) shows that overall inflation stood at 9.17 per cent in April 2025, down slightly from 9.35 per cent in March. Both food and non-food categories saw declines last month.
However, the average annual inflation remains above 10 per cent, underscoring the need for continued vigilance and policy discipline.
Governor Mansur reiterated that monetary tightening and fiscal discipline remain central to sustaining the downward trend in inflation.
“We must avoid the temptation of financing deficits through money creation,” he warned. “Monetary expansion may offer short-term relief but will only fuel inflation again.”
He stressed that commercial banks have a critical role to play in supporting economic recovery without compromising macroeconomic stability.
Dr Mansur also highlighted persistent gender disparities in financial access, noting that women receive only 6 per cent of total banking sector loans – a figure he described as "far from realistic."
“There are many obstacles for women in accessing loans. We must find ways to overcome these and move women forward,” he said. “Financial awareness among women also needs to improve.”
He emphasised that while the central bank remains committed to promoting women’s financial inclusion, sustainable change must come from the commercial banking sector.
“We cannot keep expanding central bank funds – it would require creating new money. Instead, commercial banks must lend from their own resources, recognizing women’s rights in financial inclusion.”
The four-day fair, organised by the SME and Special Programmes Department of Bangladesh Bank, aims to boost the participation of women entrepreneurs in the formal economy.
A total of 68 women entrepreneurs from various districts are showcasing their products at the event, which runs until May 11, 2025.
On the final day, six outstanding women entrepreneurs will be honoured for their contributions.
The event was also attended by Deputy Governor Nurun Nahar, Executive Director Md Khasru Parvez, City Bank MD & CEO Masrur Arefin, and Naushad Mostafa, Director of the SME and Special Programs Department, among other dignitaries.
n on a steady decline and targeted initiatives like this fair aimed at empowering women, Bangladesh appears to be laying the groundwork for more inclusive and sustainable economic growth.
Governor Mansur concluded: “Policy stability, fiscal discipline, and broader financial inclusion are the keys to our future success. We are moving in the right direction—but the journey is far from over.”
Source: UNB