Dhaka, Jan. 20 -- The Bangladesh Bank's latest monetary policy removing the deposit floor rate is expected to improve the liquidity condition in the stock market, said EBL Securities.

Savers will direct a part of their savings to the capital market for higher returns as the removal of the deposit floor rate will increase the possibility of the deposit rate going below the average inflation rate, it said.

Depositors, who are already earning at less than the inflation rate, tend to look for better returns against inflationary pressures and the capital market might benefit from that, added EBL Securities.

Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh, however, expressed doubt that the capital market wil...