CPD Working Paper 82
Recent Monetary Policy Statement of Bangladesh Bank (July 2009)
An Analytical Commentary
This CPD paper examines the appropriateness of the monetary policy of the country (for July-December 2009 period) in view of the emerging challenges in the areas of inflation control, price stabilisation and exchange rate management, and at the same time comes up with a number of critical observations in this regard. The study highlights the need for bringing down the currently existing high interest rate, reduction of non-performing assets, mainstreaming of microfinance in the monetary policy, and improving compliance with Basel II requirements in view of the global financial crisis. It examines the context of global debates on role of the monetary policy, with particular focus on the issue of containing inflation and stimulating economic growth. It also deals with the challenges of utilising excess liquidity in the banking systems and disbursement of agri-credit.
Contributors: Debapriya Bhattacharya and Towfiqul Islam Khan
Publication Period: September 2009