Stimulus-induced liquidity may create inflationary pressure
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Dhaka, Jan. 14 -- The policy relaxations by Bangladesh Bank and low-cost refinancing lines of credit along with the government's big stimulus packages to support economic activities had already injected a big liquidity in the economy.
Such an injection of liquidity may create some inflationary pressure in the country in near future, observed the latest annual monetary policy review of the central bank.
"In the backdrop of the COVID-19 pandemic, the government of Bangladesh and BB took a series of timely and appropriate initiatives such as stimulus packages of more than BDT 1.21 trillion, policy relaxations, low cost refinance schemes, etc., among others, to support weaker segments of the economy and to ensure sufficient liquidity in the...
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