Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Trade deficit may hit record $13b: BB
Trade deficit would hit a record $13 billion this fiscal year due to higher import payments against lower export earnings, Bangladesh Bank said yesterday. The widening trade deficit would put a pressure on the country’s foreign exchange reserve, analysts said. At the end of 2016-17, the trade deficit stood at $9.47 billion, up 46.62 percent year-on-year, according to data from the central bank.
Bangladesh to contain inflation through squeezing credits
The central bank of Bangladesh has unveiled its new monetary policy aiming to contain inflation risk through squeezing excessive lending and improve financial stability. “The new monetary policy targets employment-focused growth with stability,” Bangladesh Bank (BB) Governor Fazle Kabir said while announcing the monetary policy statement (MPS) for the January-June period of the fiscal year (FY) 2017-18 at a press conference held at the central bank headquarters in Dhaka on Monday.
H2 monetary policy a tough call: economists
Economists on Monday said it would be tough for Bangladesh Bank to implement the monetary policy the central bank announced on the day for the second half of the fiscal year of 2017-2018.
Containing private sector credit growth and inflation would be very difficult, they said. The private sector credit growth was 18.1 per cent in the first half of FY18 against the BB’s target of 16.3 per cent, while the central bank has set the private sector credit growth target at 16.8 per cent for the January-June period of FY18.
Interest on bank loans hiked to double digits again
With the growth of bank loans to the private sector, the interest on said loans have also grown. Due to an increase in demand for loans, many banks have started charging 10-12% interest rates, whereas they were charging below 10% only a few months ago. According to officials from private banks and Bangladesh Bank, some banks are reportedly granting more loans than their limits, creating liquidity crisis. Hence, they are trying to raise the interest rate to recover their funds.
Bangladesh’s stocks return to green as GP share surge
Bangladesh’s stocks backed to higher on Monday, after a steep-correction in the previous day, supported by large-cap stocks, especially Grameenphone and Square Pharmaceuticals. Analysts said the market rebounded on the day of monetary policy announcement as some investors took position on Grameenphone and Square Pharmaceuticals.
Muhith backs BB’s policy of belt-tightening
Finance Minister AMA Muhith Monday backed the central bank’s strategy to squeeze credit in its new monetary policy, saying it would help check increased fund flow ahead of the national election. Bangladesh Bank unveiled the monetary policy for January-June period at its headquarters Monday.
Avoid long-term loans for corporate
Bangladesh Bank has advised banks to avoid giving long-term loans to corporate borrowers and instead work as mediators to raise funds from the capital market for projects. “We discourage banks to provide long-term financing to avoid mismatch of asset liabilities,” said Faisal Ahmed, chief economist of the central bank, at the unveiling of the monetary policy stance for the second half of the fiscal year yesterday. The availability of long-term funds will increase along with the country’s graduation into a middle-income nation.
Tenure of BGMEA board extended again
The government once again has extended by one year the tenure of the current Board of Directors of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). BGMEA Vice-President Mohammed Nasir yesterday confirmed Dhaka Tribune about the extension. As per the schedule, declared by the BGMEA election board on December 18 last year, the biennial election for the posts of its 35 directors was supposed to be held on March 7.