It could take 12-18 months to curb inflation: BB governor
Staff Correspondent
Bangladesh Bank Governor Dr. Ahsan H. Mansur said on Thursday that implementing the government’s monetary policy to control inflation will take 12 to 18 months.
“After tightening the monetary policy, it typically takes 12 to 18 months to bring down the inflation rate. Therefore, we must remain patient,” Dr. Mansur said during a press briefing following a meeting on inflation at the Finance Ministry, chaired by Finance Adviser Dr. Salehuddin Ahmed.
The governor emphasised that the central bank's strategy is focused on managing inflation, rather than reducing the overall price level.
“We manage inflation. We don’t aim to lower prices directly. No country aims to reduce prices because that could lead to the risk of deflation,” he explained.
Deflation, defined as a sustained decline in the general price level of goods and services, can initially appear beneficial as it increases purchasing power.
However, prolonged deflation can stifle economic growth and is often linked to periods of economic instability.
Dr. Mansur further highlighted that the effects of deflation can be both positive and negative, depending on the economic context.
In response to public concerns, Dr. Mansur urged citizens to be patient as the policy takes time to yield results.
“This is not something that can be achieved in two to three months. At best, we may see some improvement in 12 months, but 18 months is a more realistic timeframe,” he said.
