Dhaka, Jan. 14 -- Businesses feel unease and inflation frowns while some liquidity-squeezing moves have been in place for months.

The central bank, however, claims its contractionary monetary policy still looks accommodative in current context.

Officials and money-market analysts say the monetary policy is contractionary in terms of value due to higher policy rate but it is very much accommodative as far as the volume is concerned.

Apart from the regular liquidity-feeding instruments of the Bangladesh Bank (BB), the flow of subsidised credits or money injection through irregular arrangements keep rising on the market, which is contradictory to the spirit of contractionary monetary-policy stance taken for holding inflation in check.

As...