Dhaka, Feb. 3 -- Reserve money with Bangladesh Bank squeezes with a negative growth by 2.0 per cent to Tk 3.7 trillion last December for inflation-control monetary measures that, seemingly, worked little so far.

In a two-pronged inflation battle, launched at government's bidding amid price rises, the central bank also raised interest rates to curtail money supply in the economy.

But inflation seems to be stubbornly high, hovering near two-digit level, with prices of many consumer supplies making fresh leaps. On the contrary, rate rises seem leading businesses to make a pause in borrowing for fresh investment, bankers and businesspeople say.

The money squeezes are mainly because of stopping "devolvement" operation by the Bangladesh Bank...