Economic Reporter :
Bangladesh Bank (BB) is set to make no major changes to its policy focus while announcing the new monetary policy statement (MPS) at the end of next July, said BB sources.
Instead, the central bank will stick to its cautionary stance in the MPS, which will be constant to the previous policy directives, the sources added.
The central bank on Tuesday held a meeting on preparation of the MPS for the first half of the next 2016-17 financial year (FY17). The meeting discussed the current situation and the future challenges of both the country’s and the global economy to identify the policy directions and the implementation strategies.
“The MPS, however, will be finalised on the basis of the next national budget and the fiscal policy directions, which will be placed in the parliament early next month”, BB Chief Economist Biru Paksha Paul told The New Nation recently after the meeting.
He said there were many issues for discussions on Tuesday’s meeting, which ended with the motion that the next monetary policy would also be accommodative and supportive one to help excel economic growth.
Without elaborating, Paul said some of the possible features of the upcoming monetary policy were also discussed at the meeting.
The central bank on January 14 this year unveiled the MPS for the second half of the outgoing 2015-16 (FY16) financial year. Like the previous MPS, the current one also focused on attaining higher growth with lower inflation.
The central bank projected GDP (gross domestic product) growth rate at 6.8 to 6.9 percent and inflation at 6.2 percent for FY16, ending in June, adding that the growth could be 7.0 percent if political stability continues.
According to Bangladesh Bureau of Statistics (BBS), the GDP would be 7.05 percent at the end the current financial year, which would be above the fiscal target of 7.0 percent and significantly higher than 6.6 percent economic growth achieved in the past 2014-15 fiscal year (FY15).
The overall point-to-point inflation also fell at 5.61 percent in April, which was not only lower than the rate of inflation targeted in the current national budget and the MPS, but also the lowest in the past 42 months. The inflation target is 6.2 percent for this financial year, ending on June 30 next.
The credit to private sector also marked a significant rise in the past eight months of the FY16, reaching 15.11 percent and showing another success of the central bank’s policy direction. The credit growth, which refers to financial resources given to the private sector by financial corporations, exceeded the target set in the current monetary policy at 14.8 percent.
Bangladesh Bank (BB) is set to make no major changes to its policy focus while announcing the new monetary policy statement (MPS) at the end of next July, said BB sources.
Instead, the central bank will stick to its cautionary stance in the MPS, which will be constant to the previous policy directives, the sources added.
The central bank on Tuesday held a meeting on preparation of the MPS for the first half of the next 2016-17 financial year (FY17). The meeting discussed the current situation and the future challenges of both the country’s and the global economy to identify the policy directions and the implementation strategies.
“The MPS, however, will be finalised on the basis of the next national budget and the fiscal policy directions, which will be placed in the parliament early next month”, BB Chief Economist Biru Paksha Paul told The New Nation recently after the meeting.
He said there were many issues for discussions on Tuesday’s meeting, which ended with the motion that the next monetary policy would also be accommodative and supportive one to help excel economic growth.
Without elaborating, Paul said some of the possible features of the upcoming monetary policy were also discussed at the meeting.
The central bank on January 14 this year unveiled the MPS for the second half of the outgoing 2015-16 (FY16) financial year. Like the previous MPS, the current one also focused on attaining higher growth with lower inflation.
The central bank projected GDP (gross domestic product) growth rate at 6.8 to 6.9 percent and inflation at 6.2 percent for FY16, ending in June, adding that the growth could be 7.0 percent if political stability continues.
According to Bangladesh Bureau of Statistics (BBS), the GDP would be 7.05 percent at the end the current financial year, which would be above the fiscal target of 7.0 percent and significantly higher than 6.6 percent economic growth achieved in the past 2014-15 fiscal year (FY15).
The overall point-to-point inflation also fell at 5.61 percent in April, which was not only lower than the rate of inflation targeted in the current national budget and the MPS, but also the lowest in the past 42 months. The inflation target is 6.2 percent for this financial year, ending on June 30 next.
The credit to private sector also marked a significant rise in the past eight months of the FY16, reaching 15.11 percent and showing another success of the central bank’s policy direction. The credit growth, which refers to financial resources given to the private sector by financial corporations, exceeded the target set in the current monetary policy at 14.8 percent.
