Inflation to come down this month, says BB chief
Wednesday, 12 September 2007
FE Report
The central bank governor Tuesday discarded any possibility of further rise in inflation and said the soaring rate is expected to come down within this month.
"The existing rate of inflation will stage a decline in September as the supply of commodity has been boosted through increased imports after July," Salehuddin Ahmed, Bangladesh Bank governor, told a group of journalists after launching the Prime Bank Foundation's 'Education Support Programme' in the city.
Mentioning poor supply of commodities following lower imports since February this year as one of the key reasons of double-digit inflation, he said the number of letters of credit (L/Cs) opened has substantially increased after July.
The point-to-point rate of inflation rose to 10.1 on July, 2007 while food inflation registered 11 percent.
Referring to on an average 17 per cent and point-to-point 23 per cent inflation rate in Sri Lanka, central bank governor said it was sustainable for them as the country achieved advancement in a number of sectors including education.
Asked whether the fresh flood that damaged crops in at least 16 districts will push up the inflation, he said it depends on how long the floodwater takes to recede.
"We have already discussed with the commercial banks and taken initiative to disburse agro-credit for a short 6-9 month term," he said.
Mentioning some bankers' request for relaxing the tax provisions so that they can increase their participation in socio-economic activities as part of corporate social responsibility the governor said, "We will devise ways to encourage banks to be involved in such activities."
"The amount you are spending on stipends for the students should be considered as intangible dividend instead of expenditure," he told the bankers.
Urging the recipients of stipends to continue their study despite financial crisis, he called upon the guardians to help their wards achieve the desired goal.
Later, the central bank governor distributed stipends to 170 college and university students, each worth Tk 1500.
Azam J Chowdhury, chairman, Iqbal Anwar, chief executive officer, M Shahjahan Bhuiyan, managing director, of Prime Bank Ltd spoke on the occasion.
Benjamin Costa, Principal of Notre Dame College and Shaheda Pervin Trisha, director of Prime bank Ltd, among others, were present on the occasion.
The central bank governor Tuesday discarded any possibility of further rise in inflation and said the soaring rate is expected to come down within this month.
"The existing rate of inflation will stage a decline in September as the supply of commodity has been boosted through increased imports after July," Salehuddin Ahmed, Bangladesh Bank governor, told a group of journalists after launching the Prime Bank Foundation's 'Education Support Programme' in the city.
Mentioning poor supply of commodities following lower imports since February this year as one of the key reasons of double-digit inflation, he said the number of letters of credit (L/Cs) opened has substantially increased after July.
The point-to-point rate of inflation rose to 10.1 on July, 2007 while food inflation registered 11 percent.
Referring to on an average 17 per cent and point-to-point 23 per cent inflation rate in Sri Lanka, central bank governor said it was sustainable for them as the country achieved advancement in a number of sectors including education.
Asked whether the fresh flood that damaged crops in at least 16 districts will push up the inflation, he said it depends on how long the floodwater takes to recede.
"We have already discussed with the commercial banks and taken initiative to disburse agro-credit for a short 6-9 month term," he said.
Mentioning some bankers' request for relaxing the tax provisions so that they can increase their participation in socio-economic activities as part of corporate social responsibility the governor said, "We will devise ways to encourage banks to be involved in such activities."
"The amount you are spending on stipends for the students should be considered as intangible dividend instead of expenditure," he told the bankers.
Urging the recipients of stipends to continue their study despite financial crisis, he called upon the guardians to help their wards achieve the desired goal.
Later, the central bank governor distributed stipends to 170 college and university students, each worth Tk 1500.
Azam J Chowdhury, chairman, Iqbal Anwar, chief executive officer, M Shahjahan Bhuiyan, managing director, of Prime Bank Ltd spoke on the occasion.
Benjamin Costa, Principal of Notre Dame College and Shaheda Pervin Trisha, director of Prime bank Ltd, among others, were present on the occasion.