For the past few years, economists and researchers have been demanding to increase interest on bank loans to bring inflation under control. Bangladesh Bank did not pay any attention to this. However, on January 17 this year, Bangladesh Bank adopted contractionary monetary policy.
To control inflation, Bangladesh Bank has slightly increased the policy interest rate to 8.5 percent. The interest rate has been left to the market. Imports are also being controlled. However, these measures have not been able to control inflation.
“Inflation will be brought down to 8 percent by December and 6.5 percent by June,” said Bangladesh Bank government chairman Abdur Rauf Talukder in a meeting with the Economic Reporters Forum (ERF) on November 7, 2023.
Sri Lanka, which is facing an economic crisis, has reduced its inflation rate. In October 2022, Sri Lanka's inflation rate was 70 percent. In February this year, it came down to 5.9 percent. India has also controlled its inflation rate. Only Bangladesh has failed to do so.