BB governor: GDP growth target may be surpassed

Bangladesh Bank Governor Fazle Kabir has announced the monetary policy for the second half of fiscal year 2016-17 (January-July), suggesting that the projected GDP growth target of 7.2% might get surpassed.

Private credit growth and domestic credit growth have been kept unchanged at the rates of 16.5% and 16.4% respectively in the policy, the governor said during the announcement at BB Headquarters on Sunday.

Inflation rate was also kept stagnant at 5.8%, like the previous fiscal year.

Monetary stance in this policy was cautious and production supportive, said the governor. 

The central bank has predicted that the tendency of the remittance flow might change a bit as the oil price in the international market has been on the rise. Increased oil price would augment the income of our expatriate workers who work in the Middle East countries.

The central bank has warned the Bangladesh Securities and Exchange Commission to be more cautious in order to avoid another 2010-like crash as the stock markets have been on an upward trend for the last few months.

BB has also asked the commercial banks to strengthen their monitoring so that the bank loans can hardly be diverted into the capital market.

source: Dhakatribune