Bangladesh Bank(BB) recently has taken a step to mop up tk20 billion from the market to check current inflationary rate.BB hopes the current restricting monetary policy will help to come down inflation reasonably.If we introspect to the fact,BB steps rather has caused inter-bank call money rate as higher as 62 percent.This measure already has created liquidity crunch in the market.For this reason, businessmen will be depressed in taking loan at higher interest rate which will impede newer investment and hence the growth rate of production and supply will be diminishing reasonably.Furthermore, higher interest rate will lead to rise production cost as well as product price simultaneously.So, there is a greater possibility of getting the situation aggravated. However, the major factor in containing inflation will depend on the response of the supply-side. There is much to be done to remove the supply side constraints. The medium term challenge for containing inflation is raising production by ensuring smooth supply of energy and power. So Govt. should be more concern in enhancing supply of power and energy.If govt. does not pay proper attention in power and energy sector to avoid production disruption through fulfilling cumulative demand of power and energy,govt. will fail to sustain current growth rate of GDP.As a result, only increasing CRR(Cash Reserve Requirement)by BB will be of no avail, if govt. remain apathetic to remove supply side constraints. Facilitating in shooting up production and supply and making it affordable to customer can only be pragmatic and reasonable step to tackling or containing inflation considerably.