BB announces monetary policy, focuses on inflation
January 19, 2010
Bangladesh Bank on Tuesday announced the monetary policy, putting inflation on top of its agenda for the second half of the fiscal 2009-10.
The half-yearly strategic guideline of the central bank also outlines the policy stance to be followed in the next six months to spur economy, perusing sustainable growth in trade, industries and agriculture.
The policy, for the first time, focuses on financial inclusion of the missing people who have not been getting institutional services for a long time, said Governor Atiur Rahman while announcing the policy at a press conference at the central bank’s headquarters.
The governor candidly admitted the looming risk of inflation mainly because of increase of the food prices on both the local and international markets.
The average inflation shows up tend recently after a significant fall in the first half of the current financial year.
Atiur cautioned that the average inflation would rise further in the second part of the fiscal if commodity prices continue to rise.
He, however, assured that the BB would monitor the situation regularly and would pursue a monetary policy to contain the inflation at a tolerable level.
The governor also expressed the hope that average inflation could be maintained at the fiscal target of 6.5 percent should the supply of commodities remain steady.
He strongly suggested for government’s intervention at the market through effective measures like OMS (open market sale).
Atiur said that the central bank would monitor if any excess liquidity had inflationary pressure on the market and credit resources go for conspicuous consumption instead of productive sectors.
But, he seeks supporting measures like OMS to keep supply of essential goods steady.
Source: thedailystar.net
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