Bangladesh Bank unveils monetary policy

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Bangladesh Bank (BB) has announced the monetary policy statement (MPS) for the first half of the current 2014-15 financial year (FY15) by keeping the credit flow growth of private sector at 16.3%.

BB Governor Dr Atiur Rahman has unveiled the MPS at 11am at a press conference at the central bank headquarters in the capital.

According to BB officials, the central bank has prepared the new MPS with special focus on some measures for increasing credit flow and spurring local and foreign investment.

The central bank has also issued a statement in this regard.

According to the BB statement, the central bank in its two past MPS kept private sector credit growth to 16.5 percent to manage inflation at a comfortable level, which had been soaring due to high food prices.

The inflation at the end of June dropped to a 17-month low of 6.97, creating the scoop of credit expansion particularly to the productive sectors.

“The persisting inflationary pressures over the past few months with the risks ahead related to the inflation outlook imply that achieving the FY15 inflation target of 6.5 percent will be challenging.”

The central bank earlier set July 27 for announcing the MPS, but rescheduled the date because of Eid vacation, beginning from July 29.

Source: Dhaka Tribune

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