Monetary Policy

IN THE CONTEXT OF BANGLADESH

(Last 5 years)
 Introduction

Purpose

Agenda Monetary Policy of lest 5 years

Analysis

Conclusion
 Monetary policy is a set of actions to control a
nation's overall money supply and achieve
economic growth.

The main goal and purpose of Bangladesh Bank

(BB)'s Monetary Policy Statements (MPS)
outline the monetary policy stance, designed to
support government's policies and programs in
Introduction pursuit of faster inclusive economic growth and
poverty reduction; while also maintaining price
stability.
 The primary purpose from this presentation
is to:

 Analyze the impact of the monetary policy on key

macroeconomic indicators, including inflation,
economic growth, and employment.

Purpose  Examine the challenges faced by the central bank

in executing its monetary policy during the given
timeframe
 Investigate the objectives set by the central bank of
Bangladesh for its monetary policy during the
specified period
Monetary Policy of Fiscal Year 2018-19
 GDP Growth = 7.86%
 Reserve Money = 8.2%
 Import ratio = $53.92B, a 1. 34% increase
from 2017.
 Export ratio = $33.99B, a 10.91% increase
from 2017
 Foreign Reserve ratio = USD 32.9B
 Foreign Direct Investment = $1.6B, a
19.37% decline from 2017
 Besides main target was interest rate
adjustment, credit control, exchange rate
policy, financial inclusion according to BB.
Monetary Policy of Fiscal Year 2019-20
• Inflation Rate= 5.59%, 0.05% increase from 2018

• GDP growth= $351.24B, a 9.29% increase from 2018.

• Import rate= $64.92B, a 1.82% increase from 2018.

• Export rate=$45.99B, a 12.91% increase from 2018.

• Foreign direct investment = $1.91B, a 21.21% decline from 2018.

• Labor Force= 40.63%, a 0.04% increase from 2018.

Monetary Policy of Fiscal Year 2020-21
• Inflation Rate= 5.69%, a 0.1% increase from 2019

• GDP growth= $373.90B, a 6.45% increase from 2019.

• Import rate= $59.18B, a 8.84% decline from 2019.

• Export rate= $39.05B, a 15.11% decline from 2019.

• Foreign direct investment= $1.53B, a 20.06% decline from 2019.

• Labor Force=39.86%, a 0.77% decline from 2019.

Monetary Policy of Fiscal Year 2021-22
• Inflation Rate= 5.55%, a 0.15% decline from 2020.

• GDP growth=6.94%, a 3.49% increase from 2020.

• Import rate= $71.02B, a 20% increase from 2020.

• Export rate=$44.39B, a 13.68% increase from 2020.

• Foreign direct investment = $1.72B, a 13.02%

increase from 2020.

• The weighted average loan rate decreased from

7.95% in 2020 to 7.33% in June 2021

• Labor Force=39.84%, a 0.02% decline from 2020.

Monetary Policy of Fiscal Year 2022-23

• Inflation Rate= 7.70%, a 2.15% increase from

2021.
• GDP growth=7.10%, a 0.16% increase from 2021.
• Import rate= $96.17B, a 35.42% increase from
2021.
• Export rate= $59.28B, a 33.57% increase from
2021.
• Foreign direct investment = $1.56B, a 9.77%
decline from 2021.
• Labor Force=40.14%, a 0.3% increase from 2021.
 The monetary policy in Bangladesh over
the last five years has been effective in
achieving its primary objectives of price
stability, economic growth, and financial
stability.

Bangladesh bank target and focus on more

investment, job creation, innovation in
Analysis technology, less interest rate, profitable
loan.
 The last five years of monetary policy in
Bangladesh have been characterized by a
concerted effort to strike a balance
between price stability and economic
growth.

The policy measures implemented by

Bangladesh Bank have generally been
Conclusion effective in achieving these objectives.