This has renewed questions over why four years of tight monetary policy have produced little result. Inflation, he argues, cannot be controlled through monetary policy alone and requires structural reform and effective competition. Instead of easing inflation, higher borrowing costs have squeezed the private sector, slowing investment and job creation without lowering prices. Business groups are demanding lower rates, but with inflation still above 6 percent, Bangladesh Bank has not cut the policy rate. As tight monetary policy continues to fail, it is increasingly clear that without effective market reform and structural intervention, inflation will remain entrenched.

Source: Dhaka Tribune January 25, 2026 17:08 UTC