The target for January-June was 10%
The crawling peg and the mid-rate were introduced on May 8 this year
Kept repo rate at 8.5%, SDF rate at 7% and SLF rate at 10%
The central bank is expected to maintain a tight monetary stance for July-December
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.
The target for January-June was 10%
The crawling peg and the mid-rate were introduced on May 8 this year
Kept repo rate at 8.5%, SDF rate at 7% and SLF rate at 10%
The central bank is expected to maintain a tight monetary stance for July-December
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.