Bangladesh Bank (BB) has again decided to formulate monetary policy twice a year, as advised by the International Monetary Fund (IMF).
The central bank in a meeting with economists on Monday took the decision, reports UNB.
As part of this, the monetary policy will start formulation for the second half of the current fiscal year in January next year, Bangladesh Bank's chief economist Habibur Rahman, told UNB on Tuesday.
“We have discussed various aspects of macroeconomics including money supply, reserve currency, and interest rates with all stakeholders including economists of the country. The current challenges of the economy were also discussed,” he added.
As per the suggestion of the economists the central bank decided to formulate the monetary policy twice a year, he said.
The monetary policy was announced twice a year since 2006.
In 2019, former governor Fazle Kabir announced monetary policy formulation once a year.
Accordingly, he announced the monetary policy for FY20 on July 31 of that year.
The central bank announced monetary policy only once in the next FY21 and FY22.
Recently, the International Monetary Fund (IMF) has recommended announcing monetary policy four times a year as a condition for getting a $4.5 billion loan.
Officials said the central bank announces monetary policy based on the data published by the Bangladesh Bureau of Statistics (BBS).
The statistics bureau publishes this data twice a year.
As a result, Bangladesh Bank will announce the monetary policy twice a year.
Bangladesh Bank will announce the monetary policy for the second half of the financial year in January.
