Bangladeshbankmonetarypolicy2014julytodec 150417155550 Conversion Gate02

8/16/2019 Bangladeshbankmonetarypolicy2014julytodec 150417155550 Conversion Gate02

1/10

BangladeshBank Monetary

Policy (July-December,

2014


2/10

• regulates the supply of

money by targetingination rate or interestrate of a country to

assure price stability• contribute to economic

growth

• assurance of lowunemployment

• ensure predictable

exchange rates with

!om"onents

MonetaryPolicy

#$"ansionary %!ontractionary

Policy

!om"onents o&monetary "olicy

'euired 'eser)e'atio % Discount *indo+ ending

'ate

"en market"erations %Moral .uasion

.tatement

.ummary


3/10

•

increases the total supplyof money in the economymore rapidly than usual.

• expands the moneysupply more slowly

than usual or even shrinksit.

!om"onents

Monetary Policy

#$"ansionary%

!ontractiona

ry Policy !om"onents o&monetary "olicy


'ate


.tatement

.ummary


4/10

• Setting the requiredreserve ratio

• Setting the discountwindow lending rate

• Open marketoperations

• Moral suasion

!om"onents

Monetary Policy


Policy

!om"onentso& monetary

"olicy


'ate"en market"erations %Moral .uasion

.tatement.ummary


5/10

• limits the amount of money

available in the economy bypreventing banks fromcreating more money than theCentral ank desires.

• rate at which the Central ankmakes loans exclusively to

other registered banks intimes of !nancial and bankinginstability.

!om"onents

Monetary Policy


Policy


'euired'eser)e'atio %

Discount *indo+

ending 'ate


.tatement.ummary


6/10

• buy and sell securities to andfrom the public and banks inwhat is known as Open marketoperations.

• encouraging people to takecertain actions that have

certain e"ects on the economy.#his is generally the one withthe least determinate e"ect andis heavily laden sociologically.

!om"onents

Monetary Policy


Policy



'ate"en

market"erations

% Moral

.uasion

.tatement.ummary


7/10

• Monetary policy aims to limit

reserve money growth to$%.%& and broad moneygrowth to $'& by (ecember)*$+

• #he M,S has aimed average-nation bringing downbelow '.%& by une )*$%

•#he policy emphasi/es morequalitative support and lesson quantitative support

!om"onents

Monetary Policy


Policy



'ate


.tatement

.ummary


8/10

• ,olicy rate is kept unchanged

01.)%&2• ,rivate sector credit growth

target is target was $'.%&

•

#he si/e of the 3xport(evelopment 4und is raisedfrom 5$.) billion to 5$.%billion and the single party

ceiling of that fund is raisedfrom 5$) million to 5$%million.

!om"onents

Monetary Policy


Policy



'ate


.tatement

.ummary


9/10

• foreign investors are allowed tosource term loans from localbanks

• the policy gave -mportance onunder6served clients7 government

and business payments by mobilephone !nancial services7 closemonitoring of SM3 andagricultural credit

• this policy mentioned strictlyfollowing the applied ceilings onloan growth

!om"onents

Monetary Policy


Policy



'ate


.tatement

.ummary


10/10

• M,S gave importance on

appropriate regulatoryand policy frameworkand mentioned longer

term savings like pensionand provident funds as atentative debt marketparticipant

!om"onents

Monetary Policy


Policy



'ate


.tatement

.ummary

Bangladeshbankmonetarypolicy2014julytodec 150417155550 Conversion Gate02

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