A high-powered panel of the Bangladesh Bank (BB) decided to maintain the policy rate at 10 percent until the inflation comes down to a desired level and also spoke about moving away from the crawling peg and letting market forces determine the US dollar exchange rate.
Bangladesh Bank Governor Ahsan H Mansur said tightening monetary policy is the only globally practised remedy to heal inflationary pain, as businessmen opposed interest rate hikes for obstructing business expansion and job creation.
Inflationary pressure is being felt severely in the face of wage growth declines.
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
A high-powered panel of the Bangladesh Bank (BB) decided to maintain the policy rate at 10 percent until the inflation comes down to a desired level and also spoke about moving away from the crawling peg and letting market forces determine the US dollar exchange rate.
Bangladesh Bank Governor Ahsan H Mansur said tightening monetary policy is the only globally practised remedy to heal inflationary pain, as businessmen opposed interest rate hikes for obstructing business expansion and job creation.
Inflationary pressure is being felt severely in the face of wage growth declines.
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
