Economic Reporter :
Bangladesh Bank will announce its Monetary Policy Statement (MPS) for the second half (January-June) period of the current fiscal on January 14.
The central bank will unveil the monetary policy at 11:00am on the day at the BB headquarters in the city.
Under the monetary programme for the financial year 2015-16, the central bank set a 14.30-per cent credit growth target for the private sector by December 2015 and 15 per cent by June 2016.
The official said that it would be a tough job for the financial sector to achieve the targeted private sector credit growth of 14.30 per cent by December of the FY15 as the credit demand from the private sector was sluggish in the first half of the FY16 due to the ongoing political uncertainty.
The central bank is yet to take any decision whether it will change the earlier projection of 15 per cent credit growth for the private sector by June 2016.
The central bank will focus on speeding up the credit flow by expanding its financial inclusion programme to increase the credit growth in the second half of the FY16, the banker said.
Under the financial inclusion programme, the BB will ask banks to disburse more credit to the farm and SME sectors.
The official said the private sector credit growth target set in the monetary policy for the July-December of 2015 was unlikely to be achieved as the year-on-year private sector credit growth posted a 13.72-per cent growth in November against the target of 14.30 per cent at the end of December.
The private sector credit growth target is unlikely to be achieved as the businesspeople are still maintaining a ‘wait and see’ approach due to political unrest and uncertainty, he added.
Bangladesh Bank will announce its Monetary Policy Statement (MPS) for the second half (January-June) period of the current fiscal on January 14.
The central bank will unveil the monetary policy at 11:00am on the day at the BB headquarters in the city.
Under the monetary programme for the financial year 2015-16, the central bank set a 14.30-per cent credit growth target for the private sector by December 2015 and 15 per cent by June 2016.
The official said that it would be a tough job for the financial sector to achieve the targeted private sector credit growth of 14.30 per cent by December of the FY15 as the credit demand from the private sector was sluggish in the first half of the FY16 due to the ongoing political uncertainty.
The central bank is yet to take any decision whether it will change the earlier projection of 15 per cent credit growth for the private sector by June 2016.
The central bank will focus on speeding up the credit flow by expanding its financial inclusion programme to increase the credit growth in the second half of the FY16, the banker said.
Under the financial inclusion programme, the BB will ask banks to disburse more credit to the farm and SME sectors.
The official said the private sector credit growth target set in the monetary policy for the July-December of 2015 was unlikely to be achieved as the year-on-year private sector credit growth posted a 13.72-per cent growth in November against the target of 14.30 per cent at the end of December.
The private sector credit growth target is unlikely to be achieved as the businesspeople are still maintaining a ‘wait and see’ approach due to political unrest and uncertainty, he added.
