FBCCI calls for govt rethink on monetary policy

FE Team | Published: July 17, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) appealed the government Monday to reconsider the recently announced contractionary monetary policy for the sake of country's economy.
"Reconsideration of the monetary policy is imperative to help the domestic industry survive, promote private sector investment and continue the employment generation efforts," the apex trade body of the country said in a statement.
The FBCCI expressed the fear that the recently announced monetary policy would further increase the cost of doing business, thus, squeezing the credit flow to private sector.
The FBCCI said the move will further slow down the growth of the private sector.
The rise of interest rate on bank loan and any further increase in price of fuel, electricity and gas will pose a serious threat to the national economy, the FBCCI noted.
It suggested reducing of the government borrowing from banks.
The FBCCI said duty on some of the industrial raw-materials has been reduced in the 2007-08 budget, but it was not significant as expected.
"The average growth of tax incidence rate on important raw materials is still above four per cent while the difference between the tax rate of imported products and local products has marked a decline," the FBCCI said.