Recently Bangladesh Bank has increased its policy rate by..

Explanation for the Question: "Recently Bangladesh Bank has increased its policy rate by.."

The multiple-choice question asks about the recent change in the policy rate by the Bangladesh Bank. Let's examine the available choices and identify the The correct answer is 75 Basis points.

Reasoning:

The policy rate, also known as the repo rate, is the interest rate at which a country's central bank lends money to commercial banks. Central banks adjust this rate to control liquidity and inflation within the economy. An increase in the policy rate generally aims to curb inflation by making borrowing more expensive, thus reducing spending and investment.

In the context of the question, to determine the recent change by the Bangladesh Bank, it's important to refer to official sources such as press releases, monetary policy statements, or financial news reports. According to a recent press release by the Bangladesh Bank, the monetary authority decided to increase the policy rate by 75 basis points to control rising inflationary pressures in the economy (Bangladesh Bank Official Site).

This decision reflects a common economic strategy where central banks increase interest rates to reduce excess demand in the market. Basis points (bps) are a common unit for describing changes in interest rates, where 1 basis point is equal to 0.01%. Therefore, an increase of 75 basis points means the new rate is 0.75% higher than the previous rate.

Conclusion:

Hence, based on official information, the correct choice is "75 basis points". This increase is part of the Bangladesh Bank's effort to manage macroeconomic stability and curb inflation. Understanding the impact of policy rate adjustments aids in comprehending broader economic conditions and central banking strategies.