IMF suggests upward policy rate in 2025 to restrain inflation: BB
The fourth tranche of the $4.7 billion loan programme depends on fulfilling the conditions given by the global lender
With Bangladesh facing higher inflation for a long time, the International Monetary Fund (IMF) has advised keeping the policy interest rate on the rise until inflation decreases.
Bangladesh Bank Spokesperson and Executive Director Huseara Shikha hinted this while talking to reporters at her office today (3 December).
An IMF delegation led by mission Chief Chris Papadakis arrived in Dhaka today to review the IMF conditions.
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The IMF says that inflation in Bangladesh is currently above 11%. It will remain around 10% throughout 2025, and after that, the international donor agency believes it may come down to 6-7%.
The fourth tranche of the $4.7 billion loan programme depends on fulfilling the conditions given by the global lender.
The IMF imposed conditions on Bangladesh for providing this loan.
Although almost all the conditions given by the lender are on track to be met, it is well behind the revenue collection target. However, the installment has already been released after showing progress in fulfilling most of the conditions.
Earlier in January 2023, the IMF approved a $4.7 billion loan for Bangladesh. It was supposed to provide this loan to Bangladesh subject to conditions.
The IMF delegation is reviewing each installment of this loan, which was given in seven installments, before releasing it.
