BB governor allays inflation fear

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Bangladesh Bank Governor Salehuddin Ahmed Friday allayed the fear of further hike in the rate of inflation in the coming months.
"I assured the IMF that the inflation would not increase, rather it might decline. The latest facts and figures do indicate to this direction," he told reporters at the Zia International Airport on return from the IMF-World Bank Annual Meetings in Washington, reports UNB.
The governor said he met IMF deputy managing director Takatoshi Kato on the sidelines of the Bank-Fund meetings when the IMF senior executive expressed the fear that the inflation in Bangladesh would increase as elsewhere in the world.
"Inflation is a concern and it's getting momentum regionally and globally," he quoted the observations of the Bank-Fund meetings.
But locally, he said, the inflation would not increase and it would remain at least stable in next few months. He added that the IMF "explained our situation from their point of view."
Salehuddin said the supply side constraints like rise in the prices of essential items and fuel oil in the international market as well as import cost pushed up inflation here. There are some demand side constraints too, but those are not so harmful at this moment, he added.
"Now our main target is to create employment opportunities and bring dynamism in the private sector," he said.
Replying to a question, the Bangladesh Bank governor said the government would not increase the prices of fuel oil, gas and electricity at the moment despite continued pressure from the donors. "It'll hamper (our) economic growth."
He informed that the donors did not insist too much this time on the hike in the energy prices.
He quoted Finance Adviser Mirza Azizul Islam, who has already made it clear not to increase the energy prices at this time, as the government's present target is to accelerate economic growth and create employment opportunities.
"I think, any decision to raise the energy prices at this time may hinder growth," said Salehuddin.
Replying to another question, he said the development partners have expressed satisfaction over the ongoing reforms in the country and inquired about how the reforms would progress in the days ahead.
"We'll take reforms ahead in our own style," the governor said as he apprised the donors. He told reporters that they put forward their suggestion on reforms from their point of view, but "we didn't go for any agreement."
Replying to another question, he said the World Bank and the IMF have assured their continued support to the development of Bangladesh.
They also assured to help in repatriating the money siphoned off from the country.