Bangladesh Bank (BB) has unveiled the monetary policy for FY 2019’s second half of on Wednesday (Jan 30) cutting down the private sector credit inflow.
Governor Fazle Kabir has announced the policy the January to June at a media briefing at central bank head quarters in the capital.
“The annual credit flow has been estimated at 16.50 percent in the private sector which was 16.80 in the last half of the FY,” said Fazle Kabir.
Governor said that there will not be major changes in the estimated fulfilment of currency objectives and, like previous years, central bank exchanged views with various parties in fixing currency policy.
According to the policy, balancing inflation and output risks—given the near-term domestic and global inflation rates, growth outlook, and the associated risks—repo and reverse repo rates will be maintained at current levels of 6% and 4.75%, respectively, for the second half of FY19.
This monetary program sets broad money (M2), domestic credit (DC), and private sector credit growth ceilings at 12%, 15.9%, and 16.5%, respectively, This is sufficient to attain the real GDP growth and CPI inflation projections of the FY19 national budget which are 7.8% and 5.6%, respectively.