'Keep patience as it could take 12-18 months to curb inflation': Cenbank governor
The governor clarified that the central bank's approach is focused on controlling inflation rather than reducing the overall price level
Implementing the government's monetary policy aimed at curbing inflation will require 12 to 18 months, Bangladesh Bank Governor Ahsan H Mansur said today (7 November).
"After tightening the monetary policy, it takes 12 to 18 months to bring down the inflation rate. So, we have to be patient," Mansur said during a press briefing following a meeting on inflation at the finance ministry, chaired by Finance Adviser Salehuddin Ahmed.
The governor clarified that the central bank's approach is focused on controlling inflation rather than reducing the overall price level.
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"We manage inflation; we don't aim to lower the price level itself. No country seeks to reduce prices to avoid the risk of deflation," he said.
Deflation, a sustained drop in the price level of goods and services, can initially seem beneficial as money gains purchasing power. However, prolonged deflation can hamper economic growth and often arises during periods of economic instability. Its impact, Mansur noted, can have both positive and negative effects on the economy.
Addressing public expectations, Mansur urged the people to remain patient as the policy gradually takes effect.
"This isn't something that can be achieved in two to three months. At best, we might see results in 12 months, but 18 months is a more realistic timeframe," the governor said.
