The International Monetary Fund (IMF) said that the latest monetary policy adopted by the Bangladesh Bank would help to curb inflation, but added that further measures would be needed to make it durable.
Inflation is the leading cause of the slow growth of leading food makers
The pass-through of a sharp depreciation of the local currency accounted for half of the inflation surge seen in Bangladesh in the last financial year, according to the International Monetary Fund (IMF)
government is likely to lower its economic growth target by one percentage point for the fiscal year ending in June
Inflation once again grazed double digits in October, advancing 30 basis points to 9.93 percent despite the government’s repeated assurances of measures to rein it in.
With major indicators showing stress in the economy, there is no good news in the investment flow too as investors now prefer to stay away from taking new projects or expanding their existing capacity.
Inflation in Bangladesh has reached its highest level in a decade and has been a persistent problem for more than 18 months, starting from early last year.
The green chilli fiasco is not the first such failure to manage the market.
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.