Economists and business leaders in Bangladesh are urging fiscal and monetary authorities to coordinate their efforts in combating the country’s escalating inflation and minimizing its impact on consumers.
During a roundtable discussion organized by the Institute of Chartered Accountants of Bangladesh (ICAB) and the Economic Reporters Forum (ERF) in Dhaka, experts emphasized the need for aligned fiscal and monetary policies to address inflationary pressures effectively.
Bangladesh’s recently concluded fiscal year 2022-23 witnessed average inflation surpassing the government’s revised target of 7.5%.
The Consumer Price Index (CPI) rose by 9.02% marking the highest average inflation rate in 12 years. Other participants at the roundtable, including Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), emphasized the need for fair benefits and support for the ready-made garment sector, which plays a vital role in the country’s economy.
They also raised concerns about defaulted loans and the burden placed on traders.
The roundtable concluded with calls for policy reviews and stakeholder discussions before implementing new monetary policies.
The need for a forward guidance policy at the Bangladesh Bank and a comprehensive approach to tackling inflation were highlighted as essential measures to address the current crisis effectively.
Despite challenges, experts remain optimistic that a synchronized approach between fiscal and monetary authorities will help mitigate rising inflation and stabilize the macroeconomic environment in Bangladesh.