The International Monetary Fund (IMF) has projected that Bangladesh’s inflation will remain elevated in the current fiscal year, reaching an average of 8.8% in 2025–26 before easing to 5.5% in 2026–27. Following a 13-day review mission in Dhaka, IMF mission chief Chris Papageorgiou praised Bangladesh’s progress in maintaining macroeconomic stability but warned that weak tax revenue, financial sector vulnerabilities, and persistent inflation continue to pose challenges. The IMF recommended maintaining tight monetary policy until inflation falls to the 5–6% target range, strengthening tax administration, rationalizing subsidies, and expanding social safety nets. It also called for credible strategies to address banking sector weaknesses and accelerate climate financing efforts. The IMF noted that if reforms continue, GDP growth could reach about 5% by 2026–27, but delays could slow recovery and heighten inflation risks.