What steps is the government taking to ease the current economic situation and crisis in Bangladesh?

What steps is the government taking to ease the current economic situation and crisis in Bangladesh?

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I am not very optimistic. For the first time, the central bank has made structural changes in monetary policy. Till now they used to prepare monetary policy by targeting money supply. But this time from July to December he has made monetary policy targeting interest rates. They will try to control inflation. September is likely to end and the inflation rate is increasing further. Food inflation rate has reached 12 percent. If this situation continues for the next few months, I don’t think the situation will change. And if expansionary fiscal policy is used then contractionary monetary policy is not sufficient. This is what is happening in our country. There is no coordination between monetary policy and fiscal policy.

Secondly, monetary policy is not a static matter. Monetary policy is made and interest rates on loans are increased. If it is necessary to increase it then it will have to be done. In such a situation, interest rates increase in many countries of America and Europe. If inflation comes down a little, then the interest rate is kept the same for a few days. If inflation increases then interest rates are increased. As a result, a policy will have to be adopted considering the situation. If there is no supply of goods in the market then there will be no result of increase in interest rate.

There is an upward trend in the prices of both locally produced and imported goods. There is a supply of locally produced goods, but these come to the market through a variety of middlemen. As a result, prices rise when artificial crises or various manipulations occur. In case of imports, it is seen that a few large companies or groups control the market.

Now business policy will have to be adopted for these matters. Then, if there is no coordination among policies, it will be difficult to control inflation. More companies will be allowed to import. Then naturally a competitive environment will develop. This will help in reducing the prices of goods. We have seen inflation above 9 percent in the last financial year. If underlying market factors are not addressed, inflation will not decline dramatically in June this fiscal year.

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