BB announces monetary policy for 2022-23 fiscal year...

BB announces monetary policy for 2022-23 fiscal year

 Staff Correspondent

 Published: 06:00 PM, 30 June 2022   Updated: 06:01 PM, 30 June 2022

Bangladesh Bank (BB); File Photo

Bangladesh Bank (BB); File Photo

Bangladesh Bank (BB) has announced a new monetary policy for the 2022-2023 fiscal year. This time 14.10 percent loan has been projected in the private sector. In other words, Governor Fazle Kabir announced a contractionary monetary policy by reducing it by 70 percent from the previous monetary policy.

He made the announcement at a press conference held at Bangladesh Bank’s Jahangir Alam Conference Hall on Thursday.

BB says it has projected 14.10 percent credit growth in the private sector for the entire fiscal year. The previous monetary policy target was 14.80 percent. The private debt growth target for next December is 13 percent to 60 percent. As of this June, private sector credit growth has been only 13.10 percent.

In the light of the government’s target set in the new monetary policy, the growth of taking loans has been fixed at 36.3%. The growth of the total internal debt has been estimated at 18.20 percent.

Noted that the GDP growth target for the 2022-2023 fiscal year has been set at 7.5 percent. On the other hand, the government has set a target of keeping inflation at 5.6 percent. Keeping this goal in mind, a new monetary policy has been announced. 

The press conference was attended by senior officials including the Governor of Bangladesh Bank.

Mentioned that the central bank formulates and publishes monetary policy to strike a balance between controlling inflation and achieving the desired growth. Monetary policy is very important in the financial management of the country.