The peg system would be linked to a carefully selected basket of currencies and operate within a predefined exchange rate corridor
Bangladesh Bank also raised the benchmark policy rate by 25 basis points to 8 percent
The BB maintained a contractionary policy stance in the July-December of 2023-24
The Federal Reserve of the US and the European Central Bank kept hiking policy rates in their fight against record inflation throughout last year and this year whereas the central bank of Bangladesh chose not to use the full force of the monetary policy.
While the government’s latest monetary policy for the first half of fiscal year 2023-24 shows an attempt to be rational for the market, it lacks vigour to solve inflation and the dollar crisis.
Like in the outgoing financial year, the common people in Bangladesh will continue to suffer from higher consumer prices in 2023-24 as the factors behind the elevated level of inflation are unlikely to change dramatically.
On the surface, the monetary policy appears to be tuned to the need of the hour: bring down inflation and conserve reserves. But it comes caving down on careful reading.
The Bangladesh Bank has decided to increase the policy rate
The Bangladesh Bank may today raise its key interest rates to tame inflationary pressure but the attempt might go in vain since the monetary authority may not withdraw the interest rate cap on loans in a true sense.
The upcoming budget poses significant challenges – arguably the most challenging in recent times – for economic policymaking in Bangladesh.
Bangladesh’s conglomerates have lost Tk 65,000 crore over the past one year because of the fluctuation of the value of the taka against the US dollar as loans have become costlier due to the volatile global economy, said a noted economist yesterday.
At the beginning of 2022, businesses were upbeat and many of them thought that the worst stemming from the losses induced by the coronavirus pandemic was finally over. That was short-lived.
Bangladesh’s $4.5 billion loan programme with the International Monetary Fund is expected to get the final approval on January 30, said the lender’s visiting top official yesterday.
Bangladesh Bank yesterday unveiled a wishy-washy monetary policy for the next six months that will prove to be ineffective in tackling the headwinds passing through the economy.
The Bangladesh Bank today raised its domestic credit growth target by 30 basis points to 18.5 per cent for the second half of 2022-23 in order to allow higher government expenditures.
Bangladesh Bank today said it would pursue a cautiously accommodative policy stance in the second half of the current fiscal year to contain inflationary and exchange rate pressures.
Bangladesh Bank today relaxed the lending rate cap for consumer loans, allowing banks to hike it up to 3 percentage points from the current level.
Bangladesh Bank has raised its policy rates by 25 basis points as it unveiled the monetary policy for the second half of the ongoing fiscal year.
Bangladesh Bank is going to unveil the monetary policy for the January-June period of the fiscal year 2022-23 this afternoon and return to the half-yearly policy after discontinuing it for three years.