The government is likely to keep the inflation rate at 6.2 per cent for the upcoming fiscal year (FY) 2015-16. It may set the growth of gross domestic product (GDP) at over 7.0 per cent.
The inflation target has been estimated at 6.2 per cent for FY 16 which has been set at 6.0 per cent for next two fiscal years (FY 17-18), according to a finance ministry's projection.
The 'confidential' projection was discussed at a fiscal coordination council meeting held at Bangladesh Secretariat Wednesday with Finance Minister AMA Muhith in the chair.
"We're hopeful about bringing down the rate of inflation at 6.2 per cent in the FY 16 if a favourable natural environment and a stable political situation continues," a member of the coordination council told the FE Thursday.
The country's inflation as measured by the consumers' price index (CPI) increased slightly in the month of March on point-to-point basis mainly because of rise in prices of food items.
The inflation rate rose to 6.27 per cent in March 2015 from 6.14 per cent of the previous month on point-to-point basis, according to the Bangladesh Bureau of Statistics (BBS) data.
On the other hand, the annual average inflation came down to 6.66 per cent in March last from 6.76 per cent of the previous month.
"We expect that the inflation on 12-month average basis will come down to 6.5 per cent from the existing level by the end of June 2015 in line with the target for the FY' 15," another senior government official told the FE.
The government earlier set the inflation target at 6.5 per cent for the FY' 15.
The council member said the meeting also expressed its opinion in favour of fixing the GDP growth to more than 7.0 per cent for the upcoming fiscal year.
The ministry has calculated the revised GDP growth target at 6.8 per cent considering the political uncertainty and domestic odds from the original target at 7.3 per cent for the outgoing FY' 15.
The Bangladesh Bank (BB) has projected that the country would achieve the GDP growth ranging between 6.5 per cent and 6.8 per cent by the end of this fiscal.
The World Bank forecast that Bangladesh would achieve a 6.5 per cent GDP growth in the FY 16 from 6.2 per cent of the FY 15 while the Asian Development Bank (ADB) projected the target at 6.4 per cent from 6.1 per cent.
On the other hand, the International Monetary Fund (IMF) has estimated that the GDP growth rate would stand at 6.1 per cent in the FY 15. It may reach at 6.5 per cent by the end of FY 16.
siddique.islam@gmail.com
Govt to keep inflation rate at 6.2pc, targets 7pc GDP growth
Siddique Islam | Published: April 10, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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