Bangladesh, April 24 -- The government injected Tk20,000 crore of high-powered money into the economy in March by borrowing from Bangladesh Bank, a move that could heighten inflationary pressure, warned Ashikur Rahman, chief economist of the Policy Research Institute (PRI).

Presenting a keynote paper at PRI's Monthly Macroeconomic Insights event in Dhaka on April 23, Ashikur said the borrowing effectively represents newly created money.

"This is high-powered money essentially printed money which may push inflation upward," he noted.

He cautioned that Bangladesh's macroeconomic stability is under strain from global uncertainties, including geopolitical tensions in the Middle East, policy unpredictability, and the challenges of graduatin...