BB unveils cautiously accommodative monetary policy for FY '20

FE Online Report | Published: July 31, 2019 15:05:44 | Updated: July 31, 2019 17:57:30

The Bangladesh Bank Governor Fazle Kabir speaking at a press conference after formally unveiling the monetary policy statement (MPS) for fiscal year 2019-20 — Focus Bangla photo

The central bank on Wednesday unveiled an accommodative but cautious monetary policy for this fiscal year (FY 2019-20) aiming to achieve maximum growth with curbing inflationary pressures on the economy.

“...dual objectives of maintaining price stability and supporting inclusive, equitable and environmentally sustainable job-rich economic growth in turn with government’s strategies and goals for sustainable growth and development” were kept in mind while preparing the policy, Bangladesh Bank (BB) Governor Fazle Kabir said.

The BB chief made the remarks today while formally announcing the monetary policy statement (MPS) for this fiscal at a press conference held at the bank's headquarters in Dhaka.

The policy rates, including CRR (cash reserve requirement), SLR (statutory liquidity ratio), Repo, and Reverse Repo, remained unchanged for the current fiscal year, according to the MPS.

The central bank fixed private sector credit growth target at 13.20 per cent and 14.8 per cent respectively for the first half (H1) and second half (H2) of the FY '20 while public sector credit growth target has been set at 25.2 per cent and 24.3 per cent respectively.


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