MCCI hails BB decision not to pursue action plan under MPS
Friday, 21 September 2007
FE Report
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka welcomed Thursday the decision of the Bangladesh Bank not to pursue the action plan under its mid-year monetary policy statement (MPS) which was announced on July 12 last.
"The Bangladesh Bank decision is timely as its move to decrease money stock would have aggravated the price situation and the problems facing rehabilitation of the flood-damaged rural economy", said the MCCI President, Mr Latifur Rahman, in a statement issued to the press on behalf of the chamber.
The statement noted that the MCCI in its earlier-issued press release had urged for withdrawal of the action plan under the Bangladesh Bank's MPS. Then, two other proposals were also made by the MCCI and the same need to be considered urgently, said the MCCI president.
In this connection, he mentioned that one of these two proposals was related to adoption of an immediate action programme to reduce the Government's borrowings from the banking sector. "A large part of such borrowings are used to finance non-productive expenditures, which have been increasing in the recent years. Government's borrowings are having significant adverse impact on the overall inflationary pressure", he said.
Mentioning the other proposal relating to holding of discussions with the stakeholders for finalisation of an action programme that should be pursued by the central bank, he said such discussion can help evolve a strategy for controlling inflation and expediting the output growth in the immediate and mid-terms. "We feel that such consultations can have beneficial impact on different sectors of the economy particularly limiting inflationary impact on the rural poor and rehabilitation of the rural economy, which is of vital importance to the domestic market-oriented business activities", he observed.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka welcomed Thursday the decision of the Bangladesh Bank not to pursue the action plan under its mid-year monetary policy statement (MPS) which was announced on July 12 last.
"The Bangladesh Bank decision is timely as its move to decrease money stock would have aggravated the price situation and the problems facing rehabilitation of the flood-damaged rural economy", said the MCCI President, Mr Latifur Rahman, in a statement issued to the press on behalf of the chamber.
The statement noted that the MCCI in its earlier-issued press release had urged for withdrawal of the action plan under the Bangladesh Bank's MPS. Then, two other proposals were also made by the MCCI and the same need to be considered urgently, said the MCCI president.
In this connection, he mentioned that one of these two proposals was related to adoption of an immediate action programme to reduce the Government's borrowings from the banking sector. "A large part of such borrowings are used to finance non-productive expenditures, which have been increasing in the recent years. Government's borrowings are having significant adverse impact on the overall inflationary pressure", he said.
Mentioning the other proposal relating to holding of discussions with the stakeholders for finalisation of an action programme that should be pursued by the central bank, he said such discussion can help evolve a strategy for controlling inflation and expediting the output growth in the immediate and mid-terms. "We feel that such consultations can have beneficial impact on different sectors of the economy particularly limiting inflationary impact on the rural poor and rehabilitation of the rural economy, which is of vital importance to the domestic market-oriented business activities", he observed.