IMF tells Bangladesh not to cut policy rate while inflation is above 7%The International Monetary Fund (IMF) has advised Bangladesh to wait until inflation falls to 7 percent before cutting the policy rate, objecting to the governor’s earlier indication of lowering it early next year. To rein in inflation, Bangladesh Bank had been raising the policy interest rate even before the Awami League government was removed from power. Governor Ahsan H Mansur, who took charge after the change of government, has continued the move, with successive increases in the policy rate. The central bank’s policy rate hikes, based on contractionary monetary policy, raised borrowing costs from Bangladesh Bank, prompting commercial banks to increase loan rates. Spokesperson Arief said, “The governor will review December’s figure before making any policy rate decision.”The IMF mission, led by mission chief Chris Papageorgiou, will continue discussions until Nov 13.

Source: bd News24 November 02, 2025 18:20 UTC