Kamruzzaman Bablu :
Investors in private sector are not taking significant amount of bank loans. As a result, the investment scenario is not gaining much momentum whereas the government needs to expedite investments to obtain the projected 7.2% GDP growth. Under this circumstance, Bangladesh Bank (BB) has already started to work for formulating a new monetary policy for the January-June period of current fiscal year. The central bank has in the meantime held a few meetings with the officials and departments concerned to discuss various aspects of the upcoming monetary policy.
Reportedly, BB is most likely to take initiatives to increase the flow of bank loans towards the private sector to boost investments so that the targeted GDP growth can be achieved. Some infrastructural challenges and gas crisis are major impediments for attracting investors, according to economists. At the same time, the government needs to be cautious so that money is not invested for vulnerable sectors, the economists added. BB is taking opinions from bankers, former governors, financial experts, businessmen and members of civil society prior to announcement of new monetary policy.
A view exchange meeting is supposed to be held between BB and concerned stakeholders at Lakeshore Hotel in the capital on Sunday to talk about different dimensions of this issue. Observations from the participants of the meeting would be taken into consideration while finalizing the monetary policy, according to BB sources.
Policymakers of the central bank are scheduled to have another meeting on Tuesday to evaluate the suggestions received from all concerned. The new monetary policy is likely to be announced on 24 January. Former finance adviser to caretaker government Dr AB Mirza Azizul Islam told The Asian Age that the continuation of previous monetary policy should be retained in the new one to enhance investments in private sector. He also emphasized on reducing interest rate for bank loans.
An official of BB said that two particular points are highlighted while stipulating monetary policies. One of those is moderate supply of money to control price hike while another aim of monetary policies is to facilitate the task of achieving projected GDP growth.
Strategies will be materialized under the new monetary policy to increase private investments, he added. However, BB will be watchful about keeping prices under control and close surveillance will be conducted to make sure that investments are not made for unproductive sectors, he further said. He also remarked that the amount of idle money in banks will be reduced if private entrepreneurs gear up investments. At present inflation rate in the country is within an acceptable range with a convenient scenario prevailing in the prices of essential commodities, the BB official stated.
Investors in private sector are not taking significant amount of bank loans. As a result, the investment scenario is not gaining much momentum whereas the government needs to expedite investments to obtain the projected 7.2% GDP growth. Under this circumstance, Bangladesh Bank (BB) has already started to work for formulating a new monetary policy for the January-June period of current fiscal year. The central bank has in the meantime held a few meetings with the officials and departments concerned to discuss various aspects of the upcoming monetary policy.
Reportedly, BB is most likely to take initiatives to increase the flow of bank loans towards the private sector to boost investments so that the targeted GDP growth can be achieved. Some infrastructural challenges and gas crisis are major impediments for attracting investors, according to economists. At the same time, the government needs to be cautious so that money is not invested for vulnerable sectors, the economists added. BB is taking opinions from bankers, former governors, financial experts, businessmen and members of civil society prior to announcement of new monetary policy.
A view exchange meeting is supposed to be held between BB and concerned stakeholders at Lakeshore Hotel in the capital on Sunday to talk about different dimensions of this issue. Observations from the participants of the meeting would be taken into consideration while finalizing the monetary policy, according to BB sources.
Policymakers of the central bank are scheduled to have another meeting on Tuesday to evaluate the suggestions received from all concerned. The new monetary policy is likely to be announced on 24 January. Former finance adviser to caretaker government Dr AB Mirza Azizul Islam told The Asian Age that the continuation of previous monetary policy should be retained in the new one to enhance investments in private sector. He also emphasized on reducing interest rate for bank loans.
An official of BB said that two particular points are highlighted while stipulating monetary policies. One of those is moderate supply of money to control price hike while another aim of monetary policies is to facilitate the task of achieving projected GDP growth.
Strategies will be materialized under the new monetary policy to increase private investments, he added. However, BB will be watchful about keeping prices under control and close surveillance will be conducted to make sure that investments are not made for unproductive sectors, he further said. He also remarked that the amount of idle money in banks will be reduced if private entrepreneurs gear up investments. At present inflation rate in the country is within an acceptable range with a convenient scenario prevailing in the prices of essential commodities, the BB official stated.
