Dhaka, Bangladesh (Tazakhobor.com): Bangladesh Bank on Thursday announces new monetary policy aiming low expectation with target downward and inflation upward for the ongoing fiscal.

 Bangladesh Bank unveiled the new monetary policy with a special focus on restraining credit flow to public sector and discouraging unproductive loans to rein in the soaring inflation.
The central bank also projects lower growth (gross domestic product) from the projected 7 percent and expects it will be in between 6.5 to 7 percent.
While announcing the monetary policy statement (MPS) for Jan-June period, BB also predicted the average inflation would be 9 per cent for 2011-12 fiscal year, is higher than the 7.5 percent average projected in the 2011-2012 budge.
In the MPS, private sector credit growth is fixed at 16 per cent and that of public sector at 31 per cent. The private sector credit growth was 18 per cent and the public sector 62 per cent in the first half of this fiscal. Broad money target is fixed at 17 per cent and 12.2 per cent for the fiscal.
BB also urged the government to limit borrowing from the banking sector and it can be achieved if the interest rates of savings certificates are increased and domestic and foreign resources can be mobilized. It also suggested to rationalized the public expenditure.
In the press briefing it also informed media that the government is trying to raise funds by selling sovereign bond and procure suppliers' credit.
According to the MPS, Bangladesh Bank will focus more on monitoring interest rate spreads so that they remain below 5 per cent.
Bangladesh Bank Governor Atiur Rahman  announced the new monetary policy at a press conference at the central bank’s conference room. Among others Senior consultant and adviser to BB governor M Allah Malik Kazemi, senior economic adviser to governor Dr Hasan Jaman, deputy governors M Abul Kashem, Abu Hena M Razee Hasan, SK Sur Chowdhury and Nazneen Sultana were also present.


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Source: Bdbangla-Report
Ker Words: Bangladesh Bank Monetary Policy, BB New Monetary Policy, Bangladesh Bank, Interest Rates, key interest rates, high inflation, Bangladesh reverse repo, BB repo rate, bank account, money making, bank loan, Central Bank Report
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