BB in dilemma over monetary policy

Pulack Ghtack

Bangladesh Bank (BB) is in dilemma to adopt its monetary policy absorbing multifarious economic pressures and accommodating the expansionary fiscal policy of the Government.
The central bank needs to tighten its monetary stance to accommodate the expansionary budgetary measures of the government, which would result in squeezing the private sector credit.
If the central bank adopts expansionary monetary measures it would lessen the value of taka in the commodity market and push the already soaring inflation up. [Read more]


 

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