Dhaka, Feb. 1 -- Bangladesh's experiment with tight monetary policy -- raising borrowing costs to curb persistently high inflation -- has hit a pause marked by uncertainty.
The central bank had pledged to hold the line until inflation fell to 6 percent. Yet, after more than 18 months of tightening, price pressures remain resistant.
Inflation has persistently stayed above 8 percent, unsettling policymakers and prompting renewed scrutiny inside Bangladesh Bank over why the strategy is no longer delivering results.
At its most recent board meeting, the central bank sought a detailed report on why inflation is not easing further -- a sign that conventional monetary tools may be colliding with deeper structural distortions.
Bangladesh Bank...
Click here to read full article from source
To read the full article or to get the complete feed from this publication, please
Contact Us.