Bangladesh Bank is going to release the monetary policy for the first quarter of the current financial year on Thursday with contractionary measures again. This time too, the main objective will be to increase the policy interest rate and reduce the money supply, so that inflation can be brought under control. Although the monetary policy has been announced through press conferences for the past few days, it will be published only on the website tomorrow for the first time.

Inflation was above 9 percent every month from January to June. Food inflation was 10.42 percent in June alone. Bank policy interest rates were raised to rein in but could not be controlled. Central Bank is going to announce the monetary policy for July-December in such a situation of high inflation, dollar crisis and unregulated banking sector.

At present the fixed policy rate is 8.5 percent. It may increase by 25 basis points under the new monetary policy. Besides, the price of the dollar increased to 118 rupees. Still, the upward spiral of inflation cannot be stopped. For this the policy interest rate may be increased further. New initiatives may also be taken.

Former Chairman of Association of Bankers Bangladesh Limited (ABB) Nurul Amin said, can we control everything with the monitoring policy of Bangladesh Bank? We no longer have that control; there is a powerful element at work here. They do business, politics and also control the money or banking system. If the good governance cannot be brought back here, the common people will be of great use.

Bangladesh Bank announced a cautious and accommodative monetary policy last January to bring down the inflation rate to 6 percent.