• Financial

BB is curbing the flow of debt to control inflation

  • Financial
  • 30 June, 2022 22:23:24

Photo: CNI

News Desk: To control rising inflation, the estimate of private sector debt growth has been reduced to 14.10 percent, which was 14.60 percent in the previous monetary policy. Besides, the repo rate, known as the central bank's policy interest rate, has been increased by 50 basis points to 5.50 percent. On Thursday, Governor Fazle Kabir announced the monetary policy for the fiscal year 2022-23. The governor said, “The main goal of monetary policy is to control inflation and maintain reserves. And we want GDP growth for employment. Bangladesh Bank (BB) decides independently, neither the government nor the ministry is intervening. The central bank makes decisions based on what is needed for the economy, not under pressure. ” Banks will now have to pay higher interest rates to borrow money from the central bank as policy interest rates have risen. The central bank hopes that the days of cheap money will come to an end, which will help control inflation. And the governor has announced the introduction of a new refinancing scheme to increase the production of imported alternative products. Besides, it has announced a margin of 85 to 100 per cent to discourage imports of luxury goods such as foreign fruits, non-food items, canned and processed products. This will reduce the pressure on the dollar, which will protect the reserves and the exchange rate. All the Deputy Governors, Chief Economists and Executive Directors were present at the monetary policy announcement ceremony at the meeting hall of Bangladesh Bank.

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