Monetary policy unveiled: Private sector credit flow target unchanged
Published : Thursday, 29 July, 2021 at 5:32 PM Count : 434
The Bangladesh Bank on Thursday unveiled an expansionary and accommodative monetary policy for the fiscal year 2021-2022, maintaining the continuity of the preceding fiscal year.
The central bank uploaded the new monetary policy statement (MPS) for FY 2021-22 on its website early Thursday afternoon to encourage investment in private sector for generating employment opportunities and address the adverse impact of coronavirus on the economy .
The MPS has projected private sector credit growth ceiling at 14.80 per cent in the current fiscal.
The monetary policy has laid maximum emphasis on implementation of the incentive packages.
The MPS shows that Bangladesh Bank has planned to support continuing efforts of economic recovery process while maintaining appropriate cautions for overall price and financial stability.
"The projection of public sector credit growth is made based on the government's expected borrowing needs from banks as envisaged in the national budget for FY22," said the MPS.
"The projection of private sector credit growth, on the other hand, has been kept unchanged given the fact that the pace of credit demand will pickup in the coming months with the expectation that the economy will reopen soon as the pandemic containment measures are underway in terms of broad based national vaccination and other health related safety programmes," it added.