The newly launched macro-policy unit under the finance ministry will coordinate with the central bank the adoption and updating of the country's monetary policy.
This has been defined in the working schedules of the 'Real and Monetary Sector' wing under the macro-policy unit that will start functioning from this week.
The Bangladesh Bank which prepares the monetary policy (BB) on half-yearly basis will now have to exchange views and analyse with the unit before announcement of such a policy, said a senior finance ministry official.
No central bank official was available to comment on the issue.
Coordination with the central bank on adoption and updating of the monetary policy is one of the 12 activities of the Real and Monetary Sector wing and those are also closely linked with the monetary policy.
The unit will be run by an additional/ joint secretary and will be assisted by three deputy and five senior assistant secretaries.
A foreign expert to be appointed at the recommendation of the International Monetary Fund (IMF) will act as an advisor to the wing. The expenses of the advisor will be borne by the IMF, said the finance ministry official.
The unit, as per working schedule, will also monitor exchange rate policy and the movement of the exchange rates.
It has been empowered to give recommendation to remove inconsistency, if there is any, between monetary, fiscal and exchange rate policies.
The unit will project money supply to the private sector and monitor interest rates. If needed, it will make suggestions on fixation of interest rates.
The unit will also give recommendation on preparation and updating of the policy on the development of the country's private sector.
It will monitor prices of the essential commodities in the local and international markets with a view to analysing the inflationary trend, said the working schedules.
The Fiscal Policy and the Budget Monitoring and Reporting wings have also been created under the unit as part of the reform programme in the finance ministry.
Last week, a meeting under the finance secretary reviewed the ongoing reform programme.
Directive has been issued to the officials concerned to take necessary steps to make the macro-policy unit functional from the first week of the current month.
