Dhaka, June 3 -- Bangladesh Bank chief Ahsan H Mansur expects inflation will slow to under 7 percent within September, aided by exchange rate stability and waning price pressures.

He highlighted that recent exchange rate stability has eased one of the biggest inflation risks, allowing prices to moderate and paving the way for potential interest rate cuts.

Mansur said: "The main inflation challenge was exchange rate volatility. Without stabilising it, prices would have risen further.

"The exchange rate is now steady, even after being left to market forces, which has restored confidence and set inflation on a downward path."

The governor was speaking at a post-budget press conference at Dhaka's Osmani Memorial Auditorium on Tuesday.

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