Bangladesh Bank's initiatives
The annual average rate of inflation is increasing. The government expects inflation rate to come down in this fiscal year. But the market is yet to see any downward inflationary trend. Money supply is continuing to increase, causing an increase in price level. Bangladesh Bank (BB) has to manage money supply in such a way that it does not squeeze the availability of funds for business and industry. It should encourage investments in productive sectors. It should consider lowering of interest rate while governments across the world are reducing the interest rate to make funds available to people.
BB has taken some praiseworthy steps in the face of a financial meltdown. Bringing back the government investment from foreign banks has been a right decision.
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