Bangladesh Bank’s latest report on the macroeconomic situation in the country reveals that the central bank is prioritising means to curb rising commodity prices as formulating new monetary policy for the fiscal year 2022-23 gets underway.
The central bank’s target is to keep inflation at 5.6% in line with the proposed budget, while GDP growth is expected to be 7.5%.
Other priorities are stabilising the foreign exchange markets, while keeping foreign currency reserves and public debt at a comfortable level.
Bangladesh Bank Executive Director Sirajul Islam mentioned that volatile global markets of essential commodities and the ongoing Russia-Ukraine war have a negative impact on the local market. “The central bank will formulate monetary policy considering these issues and take measures to keep price hikes in check,” he added.
Like in the past couple of years, Bangladesh Bank Governor Fazle Kabir is scheduled to unveil the new monetary policy on the last day of the current fiscal year, 30 June (Thursday). The monetary policy for FY2021-22 emphasised implementation of the stimulus package the government announced to facilitate recovery from the adverse economic impact of Covid.
Economists suggest the Bangladesh Bank reduce credit flow and lift the cap on interest rates to effectively curb price hikes.