Bangladesh Bank Governor Ahsan H Mansur on Tuesday expressed optimism that inflation could dip below 7% by September, paving the way for a reduction in the central bank’s policy interest rate.

Speaking at a post-budget press conference in Dhaka, Mr Mansur identified inflation and money market stability as key challenges but said both were now improving. “Inflation is easing, and the exchange rate has stabilised,” he noted.

Food inflation has already dropped from 14.5% to 8.5%, and non-food inflation from 11.5% to 9.25%, according to the governor. “We are hopeful that the rates will go down faster,” he said.

He emphasised that the exchange rate’s recent stability—hovering around Tk 122-123—has provided relief by limiting the inflationary impact of global price increases. “Our main challenge was stabilising the exchange rate. Now that we have achieved that, we can expect inflation to fall further,” he added.

Mr Mansur said tight monetary policy would remain until inflation drops below 7%, after which policy interest rates could be adjusted.

Also speaking at the briefing, Power and Energy Adviser Muhammad Fouzul Kabir Khan highlighted reforms in LNG pricing in the proposed budget. “The removal of VAT on LNG imports addresses a negative value addition,” he said.

He added that recent reductions in LPG and fuel prices would help lower transport and production costs, easing pressure on consumers and businesses alike.