IDEAS home Printed from https://ideas.repec.org/p/pdb/pbrief/29.html
   My bibliography  Save this paper

CPD's Reaction to the MPS FY2021-22: To What Extent Does Monetary Policy Meet the Needs of the Economy?

Author

Listed:
  • Fahmida Khatun
  • Syed Yusuf Saadat

Abstract

The monetary policy of FY2021–22 appears to be a cautious policy during the chaotic times of the pandemic. The central bank has refrained from taking any active steps in reducing the prevailing excess liquidity in the banking system, but has assured that it will not hesitate to take action if the need arises. The overall stance of the policy is expansionary, and in the words of the central bank, "accommodative". It appears that the targets set for private sector credit growth and economic growth may not be met, considering the rapid worsening of the COVID-19 situation. Finally, governance of the banking sector will be an important determinant for better recovery of the economy. Unfortunately, reforms in the banking sector remain outside the radar of the central bank.

Suggested Citation

  • Fahmida Khatun & Syed Yusuf Saadat, 2021. "CPD's Reaction to the MPS FY2021-22: To What Extent Does Monetary Policy Meet the Needs of the Economy?," CPD Policy Brief 29, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:pbrief:29
    as

    Download full text from publisher

    File URL: https://cpd.org.bd/resources/2021/12/CPDs-Reaction-to-the-MPS-FY2021-22.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Monetary Policy; FY2021–22; Economic Growth; COVID-19; Bangladesh;
    All these keywords.

    JEL classification:

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pdb:pbrief:29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Avra Bhattacharjee (email available below). General contact details of provider: https://edirc.repec.org/data/cpdddbd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.