BB unveils crucial MPS today: Main thrust to be on inflation control
Relaxing rate caps comes as a predominant suggestion as the central bank is set to launch today a new monetary-policy stance within a space squeezed by higher inflation, banks’ liquidity crunch and global uncertainty. In the prevailing ambiance, Bangladesh Bank Governor Abdur Rouf Talukder walks a tightrope in balancing so many heterogeneous monetary and financial factors in the half-yearly monetary policy statement or MPS. As such, the latest stances on money management may remain almost unchanged, people familiar with the matter told the FE, notwithstanding some economists’ views for relaxing the interest-rate caps. The Bangladesh Bank Governor will announce the monetary policy at 3:00 pm at Jahangir Alam Conference Hall of the central bank, Md Mezbaul Hoque, executive director and spokesperson for the central bank, told The Financial Express. However, it is anticipated that the monetary policy will prioritize controlling the stinging inflation and attaining the GDP target with policy intervention. Economists note that the monetary policy is going to be rolled out at a time when the global and domestic economies have been passing through hard times. They welcome the switching back to half-year monetary stances as they think it will give some signals on the money market.
Bangladesh moves up 14 notches
Bangladesh has advanced 14 spots in the Global Innovation Index (GII) 2022 in a major stride but it still lags behind some of its innovative peers. The ranking by the United Nations’ World Intellectual Property Organization (WIPO) placed the country at 102nd last year, up from 116th in 2021, among 132 economies. Although Bangladesh’s overall score was 19.7 compared to top-ranked Switzerland’s 64.6, its performance was in line with the level of the country’s development, according to the report. The lower ranking, however, highlights Bangladesh’s weak education system, lack of human capital and research, and shortfall in business sophistication. The index uses various indicators to rank innovation. They include measures on the political environment, education, infrastructure and knowledge creation. Bangladesh performs relatively well in the creative output category, advancing to 87th place from 123rd a year earlier, driven by its solid progress in industrial design, global brand value, and mobile app creation. In the institution category, Bangladesh moved up 13 notches to 109th and slipped one spot to 112th position in the political environment segment.
IMF deputy managing director in Dhaka to finalise $4.5b loan
The deputy managing director (DMD) of the International Monetary Fund (IMF), Antoinette Monsio Sayeh, arrived in the capital on Saturday for a five-day visit. The high IMF official will stay in the capital till January 18. During her visit, Sayeh will meet with the prime minister, finance minister, governor of Bangladesh Bank and other senior officials of the government, according to BSS. Finance Ministry officials said Sayeh came to Dhaka from Delhi after completing her Indian visit. The IMF deputy managing director is scheduled to meet Prime Minister Sheikh Hasina on January 16. The IMF DMD will visit Padma Bridge on January 18. Sayeh will report to the IMF headquarters regarding the $4.5 billion loan for Bangladesh to combat the global recession and other situations arising from the current global condition. The report will be presented before the IMF board meeting. Based on this, the process of providing the loan will be finalized. The government has reached an in-principle agreement on the loan with the IMF. Now, only the formalities are waiting for completion.