Bangladesh Bank is set to unveil its next monetary policy on 17 January 2024 targeting the second half of the fiscal year 2023-24. Approved at the recent central bank board meeting, the draft of the policy aims to address inflation concerns and alleviate pressure on the exchange rate. Notably, officials reveal that the upcoming policy will not base exchange rates on real market dynamics due to the prevailing instability in the foreign exchange market. Instead, the policymakers advocate for maintaining control through the crawling peg system to ensure stability and counter potential threats of devaluation. With a focus on curbing rising inflation, the new monetary policy seeks to provide stability in economic conditions.
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