UNB, Dhaka :
Bankers at a workshop on monetary policy on Sunday said that if the GDP growth rate comes below 6 percent, it will have psychological effect on the investors and will work as barrier to new investment in the country.
“Below 6 percent GDP growth will create psychological barrier to the investment,” said S. A. Chowdhury, former chairman of Bangladesh Krishi Bank and also former managing director of Sonali Bank Limited, told the workshop referring to the apprehensions of economists and donor agencies that the GDP growth in the country will go below 6 percent.
The Institution of Bank Management (BIBM) organized the workshop, with its director general Dr Toufiq Ahmed Choudhury in the chair, at its auditorium in the city.
Expressing concern, most of the speakers at the workshop apprehended that the
ongoing political turmoil might affect the macroeconomic stability of the country resulting in lower GDP growth against the targeted 7.3 percent in the current fiscal year, 2014-15.
Responding to various questions on monetary policy from mid-level bankers representing different banks, Bangladesh Bank chief economist Birupaksha Paul agreed with the idea and said that Bangladesh Bank has been trying to pursue a cautious monetary policy to achieve the growth target keeping the inflation under control.
He admitted that there is frustration among the people about the growing non-performing loan (NPL) and money laundering, which the central bank also feels sharply.
“It’s true, no central bank governor will prefer to receive award keeping its NPL high,” said the BB chief economist adding that control of everything is not in the hands of the central banks in the third-world countries.
Advocating more independence for the central bank, he said the central bank’s independence helps government maintain better coordination in implementing its programmes and policies.
Bankers at a workshop on monetary policy on Sunday said that if the GDP growth rate comes below 6 percent, it will have psychological effect on the investors and will work as barrier to new investment in the country.
“Below 6 percent GDP growth will create psychological barrier to the investment,” said S. A. Chowdhury, former chairman of Bangladesh Krishi Bank and also former managing director of Sonali Bank Limited, told the workshop referring to the apprehensions of economists and donor agencies that the GDP growth in the country will go below 6 percent.
The Institution of Bank Management (BIBM) organized the workshop, with its director general Dr Toufiq Ahmed Choudhury in the chair, at its auditorium in the city.
Expressing concern, most of the speakers at the workshop apprehended that the
ongoing political turmoil might affect the macroeconomic stability of the country resulting in lower GDP growth against the targeted 7.3 percent in the current fiscal year, 2014-15.
Responding to various questions on monetary policy from mid-level bankers representing different banks, Bangladesh Bank chief economist Birupaksha Paul agreed with the idea and said that Bangladesh Bank has been trying to pursue a cautious monetary policy to achieve the growth target keeping the inflation under control.
He admitted that there is frustration among the people about the growing non-performing loan (NPL) and money laundering, which the central bank also feels sharply.
“It’s true, no central bank governor will prefer to receive award keeping its NPL high,” said the BB chief economist adding that control of everything is not in the hands of the central banks in the third-world countries.
Advocating more independence for the central bank, he said the central bank’s independence helps government maintain better coordination in implementing its programmes and policies.
