Bangladesh Bank today raised the policy rate by 50 basis points to 8.5 percent to bring down the runaway inflation

Both the government and banks are facing a tight liquidity situation, which has pushed up the yield of treasury bills and bonds and the lending rate in the banking sector

The Bangladesh Bank yesterday announced an array of measures to bolster its fight against stubbornly high inflation, a major headache for the new government.

Bangladesh Bank unveiled the monetary policy for the second half of the current fiscal year

To tame inflation, BB is likely to increase the policy rate further

PM's call to ministers is a timely one

On their first day at office, the finance minister and state minister for commerce yesterday told reporters in separate briefings that taming inflation is their priority.

Inflation, which is the equivalent of a regressive tax on the poor, accentuates income inequality to make the situation worse.