Dhaka, June 24 -- After a downturn, inflation-fueling high-powered money has surged again, largely negating the effect of a contractionary policy pursued by the regulator to stem price rises.

The money being injected into the market through some channels is stoking fear of higher monetary regime ahead.

Money-market experts have pinpointed several hikers, including the central bank's ongoing US dollar purchase from the market to stabilise the exchange rate, growing quasi-fiscal activities and the regulator's liquidity support to the struggling banks, which are largely contributing to the recent leaps in reserve-money growth.

Under a persistently tight monetary-policy regime adopted by the central bank to contain growing inflation, the i...