Journal Abstract

The article examines the Bangladesh Bank (BB)'s strategic monetary policy responses to inflationary pressures from 2010 to 2023. Inflation in Bangladesh fluctuated due to supply chain mergers and international commodity price spikes. Research shows that BB's interest rate coordination, open market leads, and reserve requirement adjustments are effective monetary policy instruments. We collected quantitative and qualitative data from primary and secondary sources for this mixed-methods study. The study examines how these policies affect inflation and economic growth by reviewing policy documents and macroeconomic data. The findings show that, although the Bangladesh Bank has used classic monetary tools, inflation dynamics need a multilayered system. This study also highlights the challenges BB confronts in balancing inflation and economic development, especially given external threats and structural weaknesses. The article suggests improving monetary policy by promoting policy transmission and strengthening economic stability strategies. It sheds light on central bank strategies in developing countries and the pros and cons of monetary policy in decreasing inflation in Bangladesh's unique economy.