Inflation will come down to 6.5pc
Friday, 8 June 2007
FE Report
The annual inflation will come down to 6.5 per cent from existing 7.0 per cent and in the medium term this will fall gradually due to adoption of consistent and cautious fiscal and monetary policy, Finance Adviser Mirza Azizul Islam said Thursday.
"We are endeavouring our best to rein in inflation. Import duty of a number of essential commodities including rice and wheat, has been already withdrawn," he said in his budget speech.
Besides, Bangladesh Bank has given directives to the commercial banks to provide credit facilities on softer terms to new importers, he mentioned.
The adviser, however, said unbridled inflation not only hurts the people, it also undermines the economic stability and discourages investment. Besides, it not only deters growth and the poor are worst hit, but also widens income inequality, he noted.
Considering the fact, the government is continuing its efforts to make the markets of agricultural products more competitive, he said.
Mentioning that the small number of wholesale markets in Dhaka is not conducive to smooth functioning of markets, he said the government has taken initiative to establish four wholesale markets in the four corners of the city.
Currently, the National Task Force and the Task Forces at district and upazilla level comprising government and non-government representatives are regularly reviewing prices of essential commodities, he noted.
The annual inflation will come down to 6.5 per cent from existing 7.0 per cent and in the medium term this will fall gradually due to adoption of consistent and cautious fiscal and monetary policy, Finance Adviser Mirza Azizul Islam said Thursday.
"We are endeavouring our best to rein in inflation. Import duty of a number of essential commodities including rice and wheat, has been already withdrawn," he said in his budget speech.
Besides, Bangladesh Bank has given directives to the commercial banks to provide credit facilities on softer terms to new importers, he mentioned.
The adviser, however, said unbridled inflation not only hurts the people, it also undermines the economic stability and discourages investment. Besides, it not only deters growth and the poor are worst hit, but also widens income inequality, he noted.
Considering the fact, the government is continuing its efforts to make the markets of agricultural products more competitive, he said.
Mentioning that the small number of wholesale markets in Dhaka is not conducive to smooth functioning of markets, he said the government has taken initiative to establish four wholesale markets in the four corners of the city.
Currently, the National Task Force and the Task Forces at district and upazilla level comprising government and non-government representatives are regularly reviewing prices of essential commodities, he noted.