Story perspectives

Bangladesh Bank Faces Inflation, Growth Challenges Ahead

2/10/2025

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Summary

Story summary

Bangladesh Bank (BB) highlights four key challenges for H2 FY25: controlling inflation, stabilizing the exchange rate, rebuilding foreign reserves, and restoring banking confidence.
Economic growth is forecasted at 4-5%, impacted by floods, labor unrest, and slow development.
BB keeps the policy rate at 10% to address ongoing inflation above 10% and increasing non-performing loans.
A rebound to 6% growth is anticipated in FY26, fueled by remittances and garment exports.

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Story summary

Bangladesh Bank (BB) highlights four key challenges for H2 FY25: controlling inflation, stabilizing the exchange rate, rebuilding foreign reserves, and restoring banking confidence.
Economic growth is forecasted at 4-5%, impacted by floods, labor unrest, and slow development.
BB keeps the policy rate at 10% to address ongoing inflation above 10% and increasing non-performing loans.
A rebound to 6% growth is anticipated in FY26, fueled by remittances and garment exports.