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Bangladesh Monetary Policy

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Bangladesh Bank monetary policy in FY 2013 is based on an assumption of global and domestic macro-economic conditions and outlook and it is a combination of productive consultation and web based comments. BB’s monetary policy was less difficult due to global economy crisis in FY 10 and FY 11. In FY 12 inflation and balance of payments was a great issue and it facilitating private sector near about 20%. There are some limitations that are reducing credit, increase productive growth, and increase reserve. In the very beginning of FY 13 the inflation comes down from a peak of 10.96% and over the year the target is to reduce the inflation.
BB’s assumption is that inFY13 real GDP growth may exceed if global economic condition is improved. FY13 has some key development in monetary policy that are foreign remittance increase by decreasing import, interbank rate fall from 20% to 12%, and SME sector developed. Government securities that are trading in secondary market are the great mechanism key of Bangladesh Bank. BB also introducing online supervisory reporting requirement and financial transaction and strengthening onside and offside vigilance. It also focuses on quality, timelines and transparency and special diagnostic examination at the four SOCBs in early 2013. It ensures that credit will used for productive purpose and also stabilize capital market.
In FY13 there is a sufficient credit for productive purpose and targeted average inflation rate is 7.5%. it reduce repo rate by 50%. It has a target to improve money growth to 17.7%, private sector growth to 18.5% at the same time it also target to reduce inflation. That balance monetary policy will reduce excessive volatility of the exchange

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