Under the contractionary monetary policy to control inflation, the policy interest rate will be increased two more times, said Bangladesh Bank Governor Ahsan H Mansoor. He said this in a press briefing with journalists on Monday (September 23).

He said the contractionary monetary policy will continue until inflation is brought under control. The policy rate will be increased once this week. The policy rate will be increased once in the next month as well.

At present Bangladesh Bank’s policy interest rate is 9 percent, through which commercial banks borrow from the central bank.

The governor also said there are plans to merge some small banks facing liquidity crunch. Because most of these banks are now owned by the government.

He also said that the net deposits of the banks which are currently facing liquidity crisis are positive.

He said, yesterday the net deposit of these banks was Tk 8.10 crore positive. That is, compared to the amount of deposits that are coming, the withdrawals are less.