Bangladesh Bank eyes national savings imbalances
Growth is high and inflation “contained”, but high-yield products are draining deposits from banks
Bangladesh Bank views the country’s macroeconomic outlook as broadly positive, but it is concerned by the possibility of imbalances caused by national savings.
The central bank, which only adjusts monetary policy twice a year, chose to leave the repo rate unchanged at 6% and the reverse repo rate at 4.75% at its meeting today (January 30). Growth is “robust” at more than 7%, the central bank says, while inflationary pressures are “well contained”. Non-food inflation was 4.5% in December.
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