Govt hopes to contain inflation at 6.5pc in FY25

The government is hoping to contain inflation at 6.5 percent in the next fiscal year (FY25) with the help of the policies and strategies adopted by the government.

"We are expecting that the inflation rate will come down to 6.5 percent in the next fiscal year as an outcome of the policy-strategies that we have adopted," said Finance Minister AH Mahmood Ali while placing the national budget for FY25 at Jatiya Sangsad (JS) Bhaban on Thursday.

He said Bangladesh has already undertaken contractionary monetary policy in line with steps taken by other countries in the world to control inflation.

He said the interest rate has been increased significantly. Policy interest rate increased to 8.5 percent, Standing Lending Facility (SLF) rate increased to 10 percent and Standing Deposit Facility (SDF) increased to seven percent.

Besides, Six Months Treasury Bill based Interest Rate Determination System (SMART) has been abolished and made market-based. The demand for loan and the interest rate will be determined based on the supply of credit and the relationship between bankers and customers, Ali added.

To control inflation, the Finance Minister said various steps are being taken to make the monetary policy a successful one. At the same time, supportive policies are being implemented in the fiscal sector as well.

He said government support like Family Card and OMS Programmes are being strengthened to protect the common people from adversities arising from high inflation.