The International Monetary Fund (IMF) has forecast that Bangladesh’s inflation will remain elevated through the current fiscal year, reaching an average of 8.8% in 2025–26, up from 8.2% previously projected. The IMF expects inflation to gradually decline to 5.5% by 2026–27 if monetary tightening continues. Following a 13-day mission in Dhaka, IMF mission chief Chris Papageorgiou praised Bangladesh’s progress in maintaining macroeconomic stability but warned of challenges from weak tax revenue, financial sector vulnerabilities, and persistent inflation. The IMF recommended maintaining a tight monetary policy until inflation falls to 5–6%, strengthening tax administration, reforming subsidies, and expanding social safety nets. It also urged faster action on climate financing and credible strategies to resolve banking sector weaknesses. The next loan review for Bangladesh’s $5.5 billion program is expected by May next year after the new government takes office.