The review meeting of the Bangladesh Bank (BB) monetary policy committee (MPC) has decided not to increase the policy interest rate for the time being, reports UNB.
The committee acknowledged that although inflation remains elevated, the monetary policy stance is on the right track and there is no immediate need to raise the policy rate further.
The MPC assessed the current macroeconomic situation, challenges, and outlook from domestic and global perspectives.
Moreover, the MPC focused on reviewing the current inflation trend and outlook, economic activities and growth prospects, recent financial market developments, and developments in the external sector. Specifically, the MPC extensively reviewed the overall banking sector’s liquidity situation, particularly the cash flow shortage of some conventional as well as Islamic banks, interest rate trends, the foreign exchange reserve position, and exchange rate developments.
The committee anticipates that inflation will likely decrease due to the downward trend in the global price outlook, moderation in geopolitical tensions, the stability in our exchange rate, the expected good harvest of Aman paddy, and the increasing supply of winter season vegetables.