Inflationary pressure will fall soon

Governor of the Bangladesh Bank Dr Ahsan H Mansur has assured business leaders that inflationary pressure will fall due to various regulatory interventions, according to a press release issued by a leading business body.
He shared his optimism that people will enjoy the outcomes of the inflation-containing steps taken by the central bank soon.
The governor made the remarks during a meeting with a delegation of Dhaka Chamber of Commerce and Industry (DCCI) led by its President Taskeen Ahmed at the central bank headquarters in the capital's Motijheel on Thursday.
Citing the governor, DCCI said the banks have been directed to open letters of credit (LCs) without any margin to keep the prices of goods stable during the upcoming Ramadan, especially for the imports of essential goods.
Mansur said there is no dollar crisis in the market at the moment and the price is quite stable, but the central bank will not determine the price. Rather, it will be determined based on the supply and demand of the currency.
"But we are very cautious about the stability of dollar price in the market, and our strong monitoring will continue," the governor said.
"If the inflation falls down to around 7 per cent in June-July this year, bank interest rates will fall further based on the market," he also said.
Mansur said the central bank would look into the proposal for extending the loan classification deadline period, which is three months now.
He also opined the central bank would try to examine the present conditions for opening up overseas business offices with an aim to make it a bit relaxed.
He said remittance inflow is quite positive, export earnings are on the upswing, and reserves are gradually increasing. "So, we will be able to enjoy the benefits soon."
The governor, however, urged businessmen to do business with utmost compliance as the central
bank would be strict about that.
During the meeting, the DCCI president requested the governor to extend the loan classification deadline to at least three to six months considering the challenging situation of the economy.
He said extending the deadline would help businessmen accommodate economic adjustments and ensure smoother repayment capabilities.
Ahmed said considering the overall situation, the economy is facing a lot of challenges and the recent decision to increase VAT and tax has made the situation even more challenging.
He said high bank interest rates are increasing the cost of doing business.
The business leader suggested keeping bank interest rates a little lower in the prevailing situation to help the private sector credit flow grow and boost private investment.
Ahmed further said a cottage, micro, small, and medium enterprise (CMSME) entrepreneur has to provide at least 31 documents to get benefits from the Credit Guarantee Scheme, which is why they sometimes lose hope of getting credit facilities.
He also requested the governor to relax the existing stringent policies on setting up overseas business offices to some extent, which would ultimately expedite exports and investments.
The DCCI president proposed increasing the accountability of the central bank as well while ensuring transparency and accountability of the country's overall financial sector.
DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman, and high officials of the Bangladesh Bank were also present during the meeting.
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