Dhaka, May 3 -- Inflation has remained stubborn for months and cannot be curbed because of the frequent rescheduling of classified loans at banks, said Mohammed Farashuddin, a former governor of the Bangladesh Bank.

"The frequent rescheduling of classified loans has led to a growing shortage of money, prompting the central bank to print more currency. This is why inflation is not cooling down," he said at an event titled "Conversation with Dr Mohammed Farashuddin".

"So, defaulted loans must be recovered with an iron hand. We need someone to effectively communicate these issues to policymakers," he said during the programme organised by the Economic Reporters' Forum (ERF) at its Paltan office in the capital.

The economist who helmed the...