Dhaka, Bangladesh (BBN) – Bangladesh’s broad money supply increased slightly in November, 2017 compared with the previous month of same calendar year.

The broad money supply rose to 10.83 per cent in November, 2017 on a year-on-year basis from 10. 71 per cent in October last, according to the central bank latest statistics. The money supply was 10.43 per cent in September.

Such money supply growth is still below the target, set by the central bank of Bangladesh in its outgoing monetary policy statement (MPS).

“Negative borrowing from the banking system by the government has contributed to keep the broad money such level,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.

Earlier on July 26 last, the Bangladesh Bank (BB) projected in its first half-yearly (H1) monetary-policy statement for the fiscal year (FY) 2017- 18 that the broad money supply would grow at 12.9 per cent in December 2017 and 13.9 per cent in June 2018 respectively.

The central banker also said negative position on the country’s balance of payments has also pushed down the broad money growth during the period under review.

Total broad money supply rose to BDT 10403.65 billion in November from BDT 10332.22 billion a month before.

Bangladesh’s overall BoP pendulum slid to a deficit of US $225 million during the July-October period of the ongoing FY 18, which was in a healthy surplus of $2.04 billion in the same period of the previous fiscal.

The BoP deficit was $360 million in the first quarter (Q1) of the FY 18.

On the other hand, the growth of reserve money also came down to 11.82 per cent in November, 2017 from 12.66 per cent a month ago. It was 13.41 per cent in September, 2017.