New monetary policy aims inflation control

Bangladesh Bank today announced its new monetary policy with an aim at stabilising inflation at a moderate level keeping pace with the government's budgetary target of higher growth.

HIGHLIGHTS:

- Broad money growth for fiscal 2017 is set at 15.5 percent, based on the 2016-17 growth of 7.2 percent and inflation target of 5.8.

- Domestic credit is projected to grow by 16.4 percent in year-to-year basis in fiscal 2017, with credit to private sector credit growing by 16.5 percent and credit to public sector by 15.9 percent.

- Down-trending annual average inflation in June 2016 and some other factors coupled with proactive management of market liquidity is expected to keep inflation at or close to 5.8 percent.

- Bangladesh Bank’s policy interest rates will continue to remain unchanged at the current levels of 6.75 and 4.75 respectively.

- Bangladesh Bank will continue to focus on inclusive, productive use of credit; with particular attention to adequacy of credit flows to agriculture, SMEs, and environment-friendly activities.