BB will announce new monetary policy on June 30

Bangladesh Bank (BB) will announce monetary policy for the new fiscal year (2022-23) on June 30 amid challenges of growing inflation rate and taka weakening against US dollar.

BB’s outgoing governor Fazle Kabir will announce the monetary policy physically through a press conference though it was announced virtually or just uploaded on the central bank website in the last two years due to the Covid-19 pandemic.

Usually the BB formulates and publishes monetary policy for controlling inflation and achieving the desired GDP growth.

Monetary policy is very important in the financial management of the country. Through this, a plan is presented to increase or decrease the internal debt, money supply, internal resources, and foreign resources.

The BB has been facing several challenges this year to prepare a monetary policy as the time is very challenging for price hike of energy and essential commodities as well, said a senior official who works at the monetary policy department of BB.

Chief Economist of BB Md. Habibur Rahman told UNB that the government has set interest rates on bank loans and the exchange rate of dollars.

“There is nothing new in this year's monetary policy, but controlling the inflation rate will be given priority,” he said.

Experts said the government borrowing from banks and other domestic sources to make up the budget deficit will create a pressure on bank deposit and in the monetary policy should include measures to increase investment and employment.

Source: United News of Bangladesh