Mansur, a former economist at the International Monetary Fund, said interest rates would rise. This may slow the economy further, but it is necessary to overcome the challenges.

The central bank took the decision as people have been struggling with the high level of prices for around two years.

Bangladesh yesterday made three major decisions to cushion the economy against critical risks such as stubborn inflation and depletion of foreign currency reserves.

Thanks to bold reform measures taken by the authorities, the IMF has drastically slashed the Net International Reserves (NIR) requirement for Bangladesh for the fourth tranche of the $4.7 billion loans.

PRI Executive Director Ahsan H Mansur says

Bangladesh Bank today raised the policy rate by 50 basis points to 8.5 percent to bring down the runaway inflation

The Bangladesh Bank yesterday announced an array of measures to bolster its fight against stubbornly high inflation, a major headache for the new government.

Bangladesh Bank also raised the benchmark policy rate by 25 basis points to 8 percent

Bangladesh Bank unveiled the monetary policy for the second half of the current fiscal year

To tame inflation, BB is likely to increase the policy rate further