5:08 pm - Wednesday February 21, 3894

New monetary policy for 15.5pc private credit growth

Bangladesh Bank has announced the monetary policy for the first half of 2015 with the “cautiously restrained” monetary policy stance of the latter half of 2014.

Bangladesh BankPrivate sector credit will have space for 15.5 percent growth, a substancially higher level than that of the 12.7 percent November 2014 level, BB governor Atiur Rahman said while unveiling the new monetary policy today at a press conference in Dhaka.

“There are no new loosening or tightening in the new monetary policy. The cautiously restrained policy will continue unchanged from January-June 2015,” he said.

The governor blamed the renewed political unrest for the Customer Price Index (CPI) to have remained above the targeted ceiling.

Imports have recovered from growth sluggishness of the past couple of years, Atiur said. BOP current account balance has turned around from surplus to deficit, from pick up in imports mainly of capital machinery and production inputs.

“The welcome trend of recovery in momentum of investment and output activities in H1 FY2015 strengthened optimism of FY15 GDP growth significantly exceeding the earlier projections (6.5 – 6.8 percent) based on time series trend analyses.”

– Star Online Report