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jamuna news: Bangladesh Bank (BB) will hold a consultation me...

Monetary policy: BB to meet economists
Published : Friday, 13 January, 2017 at 10:19 PM,  Read :  115  times.
Monetary policy: BB to meet economistsjamuna news: Bangladesh Bank (BB) will hold a consultation meeting with economists on January 15 before announcing half-yearly Monetary Policy Statement (MPS) by the end of this month.

"We are going to announce MPS for the second-half of the current financial year 2016-17 (FY17) this month. The date of announcement will be finalized after holding a meeting with economists," said BB Chief Economist's Unit General Manager Dr M Ezazul Islam.

The meeting would discuss the achievement of the monetary policy for the first half of FY17 and future challenges both domestic and external for preparing the MPS for the second-half, he added.

Earlier, BB economic adviser Dr M Akhtaruzzaman said the achievement of MPS for the first half (H1) of the FY17 is almost in the line of outlook and expectation for the FY17.

About the inflation, he said the country's twelve month average inflation stood at 5.52 percent in December last while the rate of point to point inflation was at 5.03 percent.

The government as well as the central bank has set the inflation target at 5.8 for the FY17.

"The present trend of inflation indicates that the target of keeping the rate of inflation within 5.8 percent in line with the current budget is very much possible," Akhtaruzzaman added.

The reserve also hit a record of $32 billion on December 29, 2016, which was enough for meeting the country's eight months' import cost.

The private credit growth, a major pulse of economic activities, also grew by 15.01 percent in November 2016.

The central bank has projected the private sector credit growth 16.5 percent for the FY17.

"We are very much hopeful to achieve the 16.5 percent credit growth at the end of the FY17 as the investment is increasing," Akhtaruzzaman added.

The inflow of remittance witnessed a slight fall in December 2016 as the country received US$958.73 million which was $1312.62 million in December 2015.

Akhtaruzzaman said the remittance is likely to come through informal channel due to multiple reasons, including exchange rate.

He also termed the present exchange rate and current account balance as very positive. The Taka-USD average exchange was Taka 78.70 on January 4, 2017, which was Taka 78.50 on January 4, 2016, according to the BB data.

The implementation of Annual Development Programme (ADP) is very good, he said adding that, the implementation of ADP normally expedites during the during the April-June period of each year. 13 January 2017

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