Dhaka, Bangladesh (BBN)- The central bank of Bangladesh is set to unveil what it says an ‘accommodative’ monetary policy aiming to face the challenges of ongoing global financial meltdown, officials said on Saturday.
Bangladesh Bank (BB), the country’s central bank, Governor Atiur Rahman will announce the half yearly (July-December) monetary policy on Sunday, a central bank announcement said in Dhaka.
“This will be a growth-supportive monetary policy. It will continue to help the productive sectors for the six months (July-December) to achieve the economic growth against the backdrop of the global recession,” a BB senior official told BBN in Dhaka.
He also said the new monetary policy is designed to curb inflationary pressures on the economy and generate employment, which in turn will help increase the purchasing power of the people.
“The aim will be to increase credit flow to some real sectors including agriculture, and small and medium enterprises (SME). We have seen that increasing credit flows to real sectors does not have much impact on the inflationary trend,” another official said.
They said all indicators relating to monetary policy and exchange rate will be included in the new monetary policy statement.
Under the new monetary policy, the central bank will ask the banks and non-banking financial institutions (NBFIs) to strengthen internal control to avert any financial risks.
“The BB will also gear up its monitoring and supervision aiming to keep unhurt the country’s banking system from the global financial crisis,” the BB official added.
On January 14 this year, the central bank unveiled its half-yearly (January-June) monetary policy aiming to achieve maximum economic growth in fiscal 2008-09 while keeping inflationary pressure under control.
BBN/SS/SI/AD-19July09-1:28 am (BST)