• Tuesday, Feb 25, 2020
  • Last Update : 12:27 am

BB amends monetary policy keeping private credit growth unchanged

  • Published at 11:01 pm January 19th, 2020
web-Stacks of Bangladeshi taka
Stacks of Bangladeshi takaMehedi Hasan/ Dhaka Tribune

The policy, however, increased the public sector credit growth target to 37.7%

Bangladesh Bank (BB) on Thursday amended the Monetary Policy for the current FY20 keeping private sector credit growth target unchanged.

The policy, however, increased the public sector credit growth target to 37.7%.

Earlier, the central bank had set the target of credit to private sector at  14.80% for the current 2019-20 fiscal year. 

BB revised the policy in the 45th meeting of monetary policy committee (MPC) held in Bangladesh Bank main office on January 16. BB Governor Fazle Kabir presided over the meeting. 

As per the revised policy, BB has set net domestic asset target of 15.5% instead of 16% for fiscal 2019-20. 

It has set a public sector credit growth target of 37.7% instead of 24.3% for the current fiscal. 

The government has exhausted its net borrowing target for the current fiscal year from the banking system in just six months (July-December) with the net borrowing reaching Tk48,015.81 crore in the period, according to BB data.

The Policy also increased the broad money circulation target to 13% instead of 12.5% for the current fiscal, according to the revised policy. 

The broad money circulation target has been increased to boost the stock market and credit in private sector, according to the BB statement. 

The private sector credit growth dropped to single digit in November, according to BB data.