Bangladesh Bank is going to announce its second half monetary policy of the fiscal year 2015-16 today trimming down inch of its private sector credit growth target.
The new monetary policy for the period of January to June will be announce at the central bank’s headquarters in the capital. Bangladesh Bank Governor Atiur Rahman will unveil the monetary policy statement.
The private sector credit growth likely to be set below 15% in line with the new monetary programme to curb inflation pressure.
Bangladesh Bank will put emphasis on disbursing SME (Small and Medium Enterprises) loans to accelerate the credit growth, said a senior executive of Bangladesh Bank.
The November credit growth stood at 13.7%, which was 13.2% in October, according to the latest data of the Bangladesh Bank.
Non-food inflation is on the rise that will be taken into a major consideration in setting monetary programme.
Bangladesh Bank will also slash the public sector credit growth from the existing projection of 23.7% as the growth rate is very slow.
The public sector credit growth was negative 4.2% in November against 8% growth projected for the first half of FY’16.
Bangladesh Bank has been lowering private sector credit ceiling in its last two monetary policies as the growth failed to reach the target point in line with the projection.
The growth rate remained slower from the year 2013 when the actual credit growth was 10.6% at the end of the year against the projected growth of 15.5%.
