Bangladesh Bank has signaled it will keep monetary policy tight until inflation is firmly under control. In early 2025, the central bank held its policy rate at around 10%, aiming to drive inflation toward the 7–8% target. This cautious stance – maintaining high interest rates despite slowing growth – is seen as prudent. It aligns with IMF advice that emerging markets like Bangladesh should lean against inflation until it is contained. In practice, this means borrowing costs remain elevated, which may dampen investment in the short run. However, it should also stabilize prices and anchor expectations. Complemented by global disinflationary trends (advanced-economy inflation is projected to decline to ~4.2% in 2025), this approach could help Bangladesh return to steadier growth. The key is to communicate clearly: businesses and consumers know that tight policy today is meant to ensure stability and stronger growth later.