Economic Reporter :
Bangladesh Bank (BB) is going to unveil the Monetary Policy Statement (MPS) for the second half (January to June) of the current financial year (FY16) today (Thursday).
The central bank governor Dr Atiur Rahman will announce the MPS at the central bank
headquarters at 11.30 am.
The monetary policy is being prepared to place special importance on various sectors to help accelerate the growth and investment, according to the sources.
“The central bank is also reviewing the challenges that the MPS should address in managing inflation while propelling the economy towards achieving higher growth,” said a BB ooficial.
The central bank on July 30 last year unveiled the MPS for the first half of the FY16 when Dr Atiur made it clear that the MPS would pursue cautious stance in credit expansion to keep inflation at a comfortable level.
In the MPS, BB projected 15.0 percent credit growth to private sector while the overall domestic credit growth was targeted at 16.3 percent. The projections were higher than the preceding year’s actual domestic credit growth of 10.4 percent and private sector credit growth of 13.6 percent.
The governor said that pumping in excessive liquidity in absence of proper infrastructure and some other things would only inflate inflation and worsen social inequity by promoting unproductive activities.
The next MPS would maintain the similar stand with adopting cautious and restrained monetary stance and ensuring adequacy of credit growth, but avoiding excessive monetary expansion, said a BB official.
Bangladesh Bank (BB) is going to unveil the Monetary Policy Statement (MPS) for the second half (January to June) of the current financial year (FY16) today (Thursday).
The central bank governor Dr Atiur Rahman will announce the MPS at the central bank
headquarters at 11.30 am.
The monetary policy is being prepared to place special importance on various sectors to help accelerate the growth and investment, according to the sources.
“The central bank is also reviewing the challenges that the MPS should address in managing inflation while propelling the economy towards achieving higher growth,” said a BB ooficial.
The central bank on July 30 last year unveiled the MPS for the first half of the FY16 when Dr Atiur made it clear that the MPS would pursue cautious stance in credit expansion to keep inflation at a comfortable level.
In the MPS, BB projected 15.0 percent credit growth to private sector while the overall domestic credit growth was targeted at 16.3 percent. The projections were higher than the preceding year’s actual domestic credit growth of 10.4 percent and private sector credit growth of 13.6 percent.
The governor said that pumping in excessive liquidity in absence of proper infrastructure and some other things would only inflate inflation and worsen social inequity by promoting unproductive activities.
The next MPS would maintain the similar stand with adopting cautious and restrained monetary stance and ensuring adequacy of credit growth, but avoiding excessive monetary expansion, said a BB official.
