DHAKA: Bangladesh Bank has announced a cautious but supportive monetary policy for the second half of the ongoing fiscal 2015-16 on Thursday.

Governor Dr Atikur Rahman declared the monetary policy at Jahangir Alam Conference Hall of the central bank this noon.

The BB governor said repo and reserve repo rates have been reduced by 50 basis points to 6.75 and 4.75 percent respectively.
The central bank also set private sector credit growth at maximum 14.8 percent, he added.

 ‘The target of private sector credit growth and broader money slightly lower than the last monetary policy but higher than the actual outcome,’ Dr Atiur added.

‘This lower policy rate and prudent credit and broad money supply (policy recalibration) can help sufficiently to acquire growth without disruption in controlling the inflation rate’, the BB governor said.

He said ‘In 2015 progress in the economy and financial system is pretty good. Despite some challenges early in the year, we were able to achieve growth in a respectable 6.51 percent. We have achieved macro-economic and price stability.’

‘Bangladesh economy has achieved a new milestone in 2015. In the last year, we have received lower-middle income country status. Consumer price remained stable since the last monetary policy. Consumer inflation declined of 62 percent in December from 6.4 percent in June. Current inflation rate is within our target’, Dr Atiur added.

However, the Central Bank says the monetary policy is to target continuation of the average inflation.

BDST: 1542 HRS, JAN 14, 2016
RS/SMS