The central bank is set to unveil its monetary policy for the first half (July-December) of the current fiscal year (2015-16) today (Thursday), officials said.
Bangladesh Bank (BB) Governor Dr Atiur Rahman is expected to announce the monetary policy statement (MPS).
The MPS, according to sources, would contain measures to help the real sectors of the economy achieve sustainable growth keeping inflation in check.
Talking to the FE, a senior BB official said the central bank has formulated the MPS that attaches top priority to curbing inflation and facilitating growth of the productive sectors.
"We'll continue the ongoing financial-inclusion initiatives through boosting investment in small and medium enterprises across the country," the BB governor had hinted at a pre-monetary policy press consultation, held at a city hotel on July 23. Biru Paksha Paul, Chief Economist at the BB, said at the same programme that the central bank believes in macro- developmental central banking committed to augmenting financial inclusion. Such inclusion, he said, is designed to make the social production process more participatory.
The BB official also said the central bank is now working to bring down the inflation to 6.2 per cent by the end of this fiscal from the existing level of 6.40 per cent in line with the government's budgetary projection.
The inflation, as measured by consumers' price index (CPI), came down to 6.40 per cent in June 2015 on the basis of 12-month average from 6.46 per cent in the previous month.
On the other hand, the inflation moved up to 6.25 per cent from 6.19 per cent on point-to-point basis, according to Bangladesh Bureau of Statistics (BBS) data.
However, core inflation had risen to 6.74 per cent in June last from 6.37 per cent a month ago, as the key economic barometer gathered heat. It was 6.28 per cent in April 2015.
The BB is measuring the core inflation, which excludes non-food and non-fuel components, from consumer price index (CPI).
"We're watching closely the recent trends of core inflation," the BB official said, without elaborating.
Another BB official said the private-sector credit-growth target is likely to remain unchanged in the MPS for the first half of the fiscal in consideration of the country's overall situation.
But the central bank may assure that the ceiling of private- sector credit growth would be enhanced in line with market requirement, the central banker explained. The central bank had set the private-sector credit growth at 15.5 per cent by the end of June 2015.
Credits to the private sector grew to 13.57 per cent last May from 13.27per cent of the previous month, the BB data showed.
© 2024 - All Rights with The Financial Express
