BB raises policy rate to tame skyrocketing inflation

The Bangladesh Bank on Sunday raised the policy rate by 25 basis points to 5 per cent in order to tame the skyrocketing inflation created by the ongoing global supply chain disruption and uncertainty in the global economy due to the Russia-Ukraine war.

The decision was taken at the 54th meeting of the monetary policy committee of the Bangladesh Bank.

The central bank made the decision considering the overall present macroeconomic situation and to contain the inflationary pressure, according to a notice issued by the BB on the same day.

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The inflation rate rose to 6.29 per cent in April — highest in 18 months, as per the Bangladesh Bureau of Statistics (BBS).

In March, the overall inflation was 6.22 per cent.

However, economists said that the real scenario of inflation does not reflect the BBS data.

The BB notice said the rising global demand, disruption of global trade and supply chain and the ongoing Russia-Ukraine war created the new uncertainty in the global economy, which pushed the fuel oil price in the international market.