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Saturday, March 12, 2011

BB raised policy rates by 50 basis points

Bangladesh Bank, the central bank of Bangladesh, raised its policy interest rates, repo and reverse repo, by 50.0 basis points to 6.0% and 4.0%, respectively, after nearly eight months to curb inflationary pressures. It keeps playing its role to check unwanted money demand from commercial banks through money tightening measures, though question remains about the effectiveness of such policies in controlling inflation. It seems the main goal is to check rapid credit flows to unproductive sectors of the economy. No doubt, it is one of the main goals of the central bank.

Here is the news link.  

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