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    The key points of Bangladesh's Monetary Policy for July to December 2023

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    The key points of Bangladesh's Monetary Policy for July to December 2023

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    The key points of Bangladesh's Monetary Policy for July to December 2023

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    © All Rights Reserved
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    15 views2 pages

    The Key Points of Bangladesh's Monetary Policy For July To December 2023

    Uploaded by

    sn n
    The key points of Bangladesh's Monetary Policy for July to December 2023

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    The key points of Bangladesh's Monetary Policy for July to December 2023.

    These points give a


    comprehensive overview of the policy's objectives and measures. Here's a summary of the key points
    you mentioned:

    1. **Objective**: The primary goal is to control inflation and maintain a stable business environment.

    2. **Policy Stance**: The policy will be contractionary, aiming to reduce overall demand in the
    economy.

    3. **Transition Framework**: Transitioning from a monetary targeting framework to an interest rate


    targeting framework.

    4. **Policy Interest Rate**: The target policy interest rate is set at 6.50 percent with a symmetric
    corridor of ±200 basis points.

    5. **Interbank Rates**: The interbank call money rate will closely align with the policy rate to ensure
    stability.

    6. **Lending Rates**: Lending activities for all purposes will be conducted at SMART plus a margin (3.00
    percent for banks and up to 5.00 percent for non-bank financial institutions).

    7. **Lending Rate Caps**: Existing lending rate caps will be removed.

    8. **Additional Fee**: Lending activities for CMSMEs and consumer loans may incur an additional fee of
    up to 1.00 percent to cover supervision costs.

    9. **Credit Card Loans**: No changes in interest rates for credit card loans.

    10. **Exchange Rate**: Implementation of exchange rate unification.


    11. **Policy Rate Adjustments**: Policy rates, including the repo rate and SDF rate, will be adjusted
    upward to increase the cost of borrowing and control CPI inflation.

    These measures reflect the central bank's efforts to manage inflation, stabilize the financial sector, and
    strengthen various aspects of the economy, including the exchange rate regime and lending practices.
    It's important for businesses, investors, and individuals in Bangladesh to be aware of these policies as
    they can have a significant impact on the economic environment.

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