DCCI welcomes BB's decision not to tighten monetary policy
Friday, 21 September 2007
FE Report
Dhaka Chamber of Commerce and Industry (DCCI) has appreciated the Bangladesh Bank (BB) Governor's decision not to tighten the country's monetary policy.
Earlier, IMF warned BB that the county's average inflation rate might exceed 9.0 per cent during the present fiscal year, if the monetary policy was not tightened.
The BB Governor did not agree with the IMF's opinion with a view to encouraging investment, maintaining economic growth and creating jobs in the country.
The DCCI, on July 16 this year, cautioned BB not to adopt tight monetary policy to curb inflation. Finally the BB has retreated from its tight monetary policy stance, announced on July 12.
In order to curb inflation, DCCI suggested restoration of the supply chain and distribution channels including evicted markets and collection centres in the rural areas, and removal of other supply constraints.
It also urged the government to provide adequate inputs like fertiliser and diesel for the farmers at subsidised prices and secure the borders to stop smuggling of these items, and restore private sector's confidence in a spirit of public-private partnership for overcoming the current economic problems.
The DCCI also suggested increasing import of foodgrains, so that replenishment of stock in the public and private godowns would have a salutary effect in reducing the market prices of foodgrains and other items as well as the rate of general inflation.
The DCCI has also urged the BB to facilitate import of essential foodgrains by lowering the rate of exchange in terms of dollar so that the value of Bangladesh currency increases with the value of the currencies of the neighbouring countries, and the import cost of foodgrains and few other essential items are reduced.
Dhaka Chamber of Commerce and Industry (DCCI) has appreciated the Bangladesh Bank (BB) Governor's decision not to tighten the country's monetary policy.
Earlier, IMF warned BB that the county's average inflation rate might exceed 9.0 per cent during the present fiscal year, if the monetary policy was not tightened.
The BB Governor did not agree with the IMF's opinion with a view to encouraging investment, maintaining economic growth and creating jobs in the country.
The DCCI, on July 16 this year, cautioned BB not to adopt tight monetary policy to curb inflation. Finally the BB has retreated from its tight monetary policy stance, announced on July 12.
In order to curb inflation, DCCI suggested restoration of the supply chain and distribution channels including evicted markets and collection centres in the rural areas, and removal of other supply constraints.
It also urged the government to provide adequate inputs like fertiliser and diesel for the farmers at subsidised prices and secure the borders to stop smuggling of these items, and restore private sector's confidence in a spirit of public-private partnership for overcoming the current economic problems.
The DCCI also suggested increasing import of foodgrains, so that replenishment of stock in the public and private godowns would have a salutary effect in reducing the market prices of foodgrains and other items as well as the rate of general inflation.
The DCCI has also urged the BB to facilitate import of essential foodgrains by lowering the rate of exchange in terms of dollar so that the value of Bangladesh currency increases with the value of the currencies of the neighbouring countries, and the import cost of foodgrains and few other essential items are reduced.