Dhaka, Nov. 2 -- The International Monetary Fund (IMF) has advised Bangladesh to wait until inflation falls to 7 percent before cutting the policy rate, objecting to the governor's earlier indication of lowering it early next year.

The visiting IMF review mission, in continuous talks with Bangladesh Bank, shared this assessment during discussions on the country's ongoing $4.7 billion loan programme.

Bangladesh Bank spokesperson Arief Hossain said on Sunday, "What the IMF has suggested is that inflation has not yet fallen to the desired level and is declining very slowly. Policy rates should not be reduced until inflation comes below 7 percent.

"This is a message to ensure we do not cut the rate at this moment."

The IMF team has been i...