Dhaka, Bangladesh (BBN) – The central bank of Bangladesh is set to unveil its second half-yearly monetary policy on Thursday aiming to boost investment, particularly in productive sectors, for achieving maximum economic growth in this fiscal year (FY), 2015-16.
BB Governor Dr. Atiur Rahman is expected to announce the monetary policy statement (MPS) for the January-June period of the FY at 11:30 am (local time) on the day to help productive sectors achieve sustainable economic growth as well as curb inflation.
The central bank has formulated the MPS giving top priority to curbing inflation and facilitating the productive sectors for achieving sustainable development across the country, officials said.
However, the BB will continue the ongoing financial inclusion initiatives through boosting investment in micro, small and medium enterprises for achieving sustainable development in Bangladesh.
“We’re now working to bring down the inflation to 6.2 per cent by the end of this fiscal, from the existing level of 6.19 per cent, in line with the government’s budgetary projection,” a BB senior official told BBN in Dhaka,
Bangladesh’s inflation as measured by consumers’ price index (CPI) came down to 6.19 per cent in December 2015 on 12-month average basis from 6.20 per cent a month ago.
On the other hand, the inflation rate went up to 6.10 per cent from 6.05 per cent on point-to-point basis, according to the Bangladesh Bureau of Statistics (BBS) data.
However, core inflation rose to around 7.50 per cent in December from 7.05 per cent in November. It was 7.20 per cent in October.
The central bank is measuring the core inflation, excluding non-food and non-fuel components from CPI.
“The BB is closely watching the recent trend of core inflation, as actions of the MPS are more consistent with such inflation,” the central banker noted.
He also said the private sector credit growth target ceiling is likely to remain unchanged in the second half-yearly MPS, considering the country’s overall situation.
But BB may say that the private sector credit growth target would enhance on the basis of market requirement, he also said.
The central bank had set the private sector credit growth target at 15 per cent by the end of June 2016.
The private sector credit growth rose to 13.72 per cent in November on year-on-year basis from 13.22 per cent in October. The credit growth was 12.88 per cent in September.