BB announces new monetary policy July 27

Staff Correspondent

Bangladesh Bank will announce its monetary policy statement for the first six months of the current financial year on July 27 with the aim of continuing the existing measures to control inflation and increase investment in productive sectors.
A BB official told New Age on Wednesday that the central bank was yet to take decision on the private sector credit growth target.
The central bank failed to achieve its credit growth targets set in the last few monetary programmes due to lack of confidence among the businesspeople amid political uncertainty.
Against the backdrop, the central bank faced criticism from various corners as its monetary projection was far away from the achieved growth, he said.
Under the monetary programme for the fiscal year 2013-14, the central bank had set 15.5 per cent credit growth target for the private sector by December 2013 and 16.50 per cent by June 2014.
The BB data showed that the credit growth in the private sector stood at 11.04 per cent in the first half of the FY14, which was the lowest in the last 13 years.
The BB official said, ‘The private sector credit growth stood at 11.39 per cent in May 2014. So, the expected credit growth in the private sector will not be achieved at the end of June.’
The central bank earlier had set higher credit growth to bring confidence among the businesspeople despite the political unrest, but its effort failed, he said.
For this reason, the BB is now thinking to set a private sector credit growth considering the actual credit demand from the private sector, the central banker said.

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