Dhaka, Bangladesh (BBN) - Bangladesh is now at a crossroads of development, Bangladesh Bank (BB) Dr. Atiur Rahman said on Saturday.
“The growth momentum that the country has achieved over the last decade must be continued and should be further energized to help the economy graduate to the middle income bracket by 2021,” the central bank chief said while addressing at a seminar in the capital Dhaka.
The Business Studies Faculty of the Dhaka University organised the seminar on “State of economy and the monetary policy statement of Bangladesh” at its campus.
In compliance with the government’s target, the BB designs its demand side strategies in support of that goal, according to the BB governor.
“We need to maintain our stability at any cost to steer further growth in the years to come,” Dr. Rahman noted. “Although our stability in both inflation and growth is the best in the region, our per capita income is still not the best. Of course our trend is satisfactory, but we have to take the full advantage of liberalization and economic reforms to grow as fast as 7 to 8 per cent per year.”
He also said: “We have to include all segments of people, such as peasants, workers, women, and the poor to expand the activity base of growth. That is how we can make our growth resilient and sustainable.”
The central bank initiatives on inclusive and green financing are yielding positive outcomes in terms of macroeconomic and financial stability, domestic demand driven broad based inclusive output growth and faster decline in poverty, the governor added.
“Agriculture, SMEs, and green projects have faced no credit crunch in Bangladesh during or following the global financial crisis. Incremental output from the agriculture sector and SME financing has helped uphold output stability and price stability in the real economy,” Dr. Rahman noted.
BB Chief Economist Dr Biru Paksha Paul presented the latest monitory policy of the central bank, announced on January 29 last aiming to achieve maximum economic growth by curbing inflationary pressure on the economy.
Business Faculty Dean Professor Shibli Rubayat Ul Islam and Professor Sheikh Samsuddin Ahmed of the department of finance were also spoke on the occasion.
BBN/SSR/AD-21Mar15-8:57 pm (BST)