The Dhaka Chamber of Commerce and Industry (DCCI) has expressed concern that the country’s persistently high policy rates could hinder investment and job creation over time.
DCCI President Ashraf Ahmed noted that while the government’s efforts to curb inflation by raising interest rates might yield short-term benefits, continuing this strategy in the long term could harm economic growth.
Ahmed made these remarks during a seminar titled “Current State and Future Outlook of Bangladesh Economy: Private Sector Perspective,” held at the DCCI office in Dhaka’s Motijheel area. He emphasized that high interest rates tend to reduce private sector growth, curtail investment, and slow employment generation as borrowing becomes more expensive and loan flow diminishes. Ahmed suggested that lowering interest rates after December could benefit the private sector.
However, Bangladesh Bank’s Chief Economist Unit director, Salim Al Mamun, urged patience, noting that inflation is still not under control. He reiterated the central bank’s stance that policy rates will continue to rise until inflation declines, as outlined in its monetary policy.
Mamun stressed that stabilizing inflation and the macroeconomic environment is a priority, with hopes that inflation could be brought to manageable levels within the next eight to ten months if government measures are properly executed.
