Economic analysts on Sunday expressed the view that the new monetary policy of Bangladesh Bank (BB) is growth and investment friendly that is being prepared keeping in view the present macro-economic condition. Terming the monetary policy as investment and growth friendly, former BB deputy governor Dr Ibrahim Khaled said, “It’s a balance monetary policy which prepared taking account of the prevailing macro-economic condition.” He added the immediate objective of monetary policy action is to affect the level of credit demand for giving boost to investment and taming inflation. In my mind, the BB’s new monetary policy will create the investment appetite for the private sector as well as help control inflationary pressures stemming from the recent supply side disruptions. He said, the private sector credit target of 16.5 per cent that is set for the monetary policy is well enough if a conducive business environment prevails in the country. “The credit target is sufficient to stimulate private sector investment and inclusive growth,” he added. Dr Khaled further said, an environment conducive to capital investment will not only reduce costs of doing business but also bring price stability ultimately taming inflation. It will act as a catalyst of productivity enhancement also. “The BB’s monetary policy seems to be growth friendly if it can successfully expand the credit targeted for the private sector,” said former adviser of the caretaker government Dr AB Mirza Azizul Islam. He also said that he is happy to see that the policy was adopted in line with the present trend of the economy and political situation. Commenting on money supply target to the private sector, he said, this target was fixed at to the previous level because the central bank has failed to meet it due to political instability and infrastructure bottleneck. “BB should focus on reducing the spread between credit and deposit to downsize the current interest rates to encourage the private sector investors,” he said, adding, once the rate of interest will decline it may create investment appetite to the investors. Dr AB Mirza Azizul Islam mentioned that an excess liquidity of Tk 85,000 crore remains idle in the banking channel and the central bank should make a policy how this huge liquidity could bring into the investment channel. The best way to utilize the fund is the rate cut, he noted.