Dhaka, Bangladesh (BBN) - The central bank has decided to continue its ongoing contractionary monetary policy with no further changes in the coming days to contain inflationary pressure on the economy.
The decisions were taken at a meeting of the monetary policy committee (MPC) held at the Bangladesh Bank (BB) headquarters in Dhaka on Tuesday with BB Governor Dr. Ahsan H. Mansur in the chair.
As per the decision, the policy rate and crawling peg band will remain unchanged in the coming days, meeting sources said.
Earlier on August 18, the central bank increased the band of the crawling peg, which allows fluctuations of the exchange rate within a predefined range, to 2.5 per cent instead of 1.0 per cent earlier aiming to increase the flow of foreign exchange in the market.
The BB introduced a crawling peg mid-rate of BDT117 in May this year by allowing an over 6.3 per cent deprecation of the local currency, which has significantly lost value in the last two and a half years amid falling foreign exchange reserves.
BBN/SSR/AD