Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Tuesday, September 29, 2020 05:12:22 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Inflation key challenge

New monetary policy targets spurt to domestic investment

By STAFF REPORTER
28th-Jan-2014       
Share
  • Twitter
  • Google+
  • Save
  • E-mail
  • Print
Comments
Share your thought
Post a comment »
Read all () »

Bangladesh Bank (BB) on Monday a announced cautious monetary policy for January-June period of the current fiscal 2013-14 saying that it would bring average inflation down to 7 percent, and tend to bring spurt to domestic investment.
Both monetary and financial sector policy instruments would be used to achieve its goal on inflation and to ensure credit growth sufficient enough to stimulate an inclusive economic growth, said Bangladesh Bank.
Bringing down inflation, the BB said, "Would be a challenge". The central bank Governor Atiur Rahman said while announcing the Monetary Policy Statement (MPS) in his office in the capital.
"The persisting inflationary pressures over the past few months with the risks ahead related to the inflation imply that achieving the FY14 inflation target will be challenging. As such BB has decided to keep interest rates unchanged," he said.
It said, as there is sufficient liquidity in the banking system; so an easing of reserve requirement ratios is also unnecessary. Average inflation grew from 6.99 percent to 7.53 percent in the second half of the fiscal year driven by higher food prices.
MPS outlines the monetary policy stance that BB will pursue in next six months, based on an assessment of global and domestic macro-economic conditions and growth outlook.
This MPS was preceded by intensive consultations with key stakeholders and web-based comments. The last MPS (July 2013) was based on certain key assumptions and policy directions. A review of developments over the past six months suggests that most of these key assumptions materialized and solid progress was made towards the key goals. The July 2013 MPS explained that high interest rates were being kept unchanged due to
the risks of inflationary pressures stemming from wage increases and supply-side disruptions. The last MPS also aimed to contain reserve money growth to 15.5% and broad.
Low demand imposed by nation shut-downs in recent months led to a rising in fall in non-food point-to-point inflation from 7.4 percent in July to 4.88 percent in December due to sluggish aggregate
Supply bottlenecks along with rising food prices in India led to point-to-point food inflation rising from 8.14 percent to 9 percent during the same time period.
The central bank slightly revised upward its forecast for the growth in gross domestic products (GDP) to 5.8 - 6.1 percent for the current fiscal year, from 5.7 percent-6 percent earlier.
It said, due to sluggish services and construction sectors and negative growth in remittances resulting in lower aggregate demand, the economy will grow by closer to 6 percent in the current fiscal year if there is no major disruption in the remaining months of the fiscal year.
The central bank forecasts said growth will pick up in the second half of the fiscal year, which will partly make up the losses in the first half.
The government has targeted 7.2 percent growth in gross domestic product in 2013-14.
BB aims to contain reserve money growth to 16.2 percent and broad money growth to 17 percent by June.
The target of private sector credit growth of 16.5 percent is sufficient to accommodate any substantial rise in investment over the next six months, said the MPS.
The monetary stance assumes the government borrowing from the banking sector will remain around the budgetary target of Tk 26,000 crore.
Overall private sector credit growth, from both local and foreign sources, amounted to 13.8 percent in November 2013.
Private credit growth from domestic sources slowed to 11.1 percent in end November compared with a year earlier.
The central bank said, gross non-performing loans rose in the banking sector from 11.9 percent of the year-end to 12.8 percent at the end of the first quarter of the fiscal year due to the 'over-hang' of earlier scams inthe state-run banks and the difficulties businesses faced in repaying loans in all banks during the recent shut-downs.

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

WASA must ensure supply of clean water for Dhaka dwellers


THE level of mismanagement, inefficiency and corruption in WASA's handling of water supply and sewerage in the capital has been greatly exposed. Despite implementation of many projects costing hundreds of crores of taka over the years, Dhaka city dwellers in many areas are still living with dirty and foul-smelling water, ...

International »

Pompeo visits Greece in bid to ease East Med tensions


Al Jazeera News :US Secretary of State Mike Pompeo has begun a two-day visit to Greece for talks aimed at de-escalating tensions in the eastern Mediterranean and setting the groundwork for dialogue between Athens and Ankara.The often-testy relations between Greece and neighbouring Turkey have deteriorated sharply this year, particularly over ...

Entertainment »

Indo-American Shree Saini in race for Miss World America pageant


Miss World America recently announced its 2020 contestants list. The 2020 Miss World America pageant will see Indian American Shree Saini. She is the chosen representative of Washington State. She is a survivor of heart surgery at age 12 for a pacemaker implant and she is a burns survivor. She ...

Editorial »

Observing Rivers Day while saving the water bodies from pollution


THE World Rivers Day on September 27, observed globally this year on the theme of 'waterways in our communities', left a question --- what is the condition of our rivers? Historically rivers play a vital role in human settlement in this delta with livelihood, communication, agricultural production. Rivers here viewed ...

City »

BIWTA Chairman Commodore Golam Sadeq speaks as Chief Guest at a photo exhibition on 100 rivers at Sadarghat Terminal on Sunday.


Editorial »

Registrar to get charge of VC in SAU not rational


DHAKA University Teachers' Association protested the decision of giving Sher-e-Bangla Agriculture University (SAU) registrar the charge of Vice-Chancellor of the university. Amid the deteriorating education quality for student politics, absence of academic integrity, teachers' involvement in administrative functions more than academic and their partisan politics, the decision of giving charge ...

International »

South Korea's domestic coronavirus cases fall to lowest in 44 days


Reuters, Seoul :South Korea on Saturday reported 49 new domestic coronavirus cases, the smallest number of locally transmitted cases in 44 days in a sign that tighter social distancing rules are paying off.Health officials reiterated calls on people to refrain from visiting their hometowns and meeting with relatives during the ...

International »

Lebanon PM-designate steps down


Al Jazeera News :Lebanon's prime minister-designate Mustapha Adib has announced his resignation after his efforts to line up a non-partisan cabinet ran into trouble, particularly over who would run the finance ministry.In a televised address on Saturday, Adib said he was stepping down from "the task of forming the government" ...

City »

Former State Minister for Information Prof Abu Sayeed speaks at the extended meeting of Gonoforum at the Jatiya Press Club on Saturday demanding national unity for meaningful change.


City »

Chairman of Jatiya Ganotantrik Andolon Khokon Chowdhury speaks at the biennial conference of Trinamul NDM at the Jatiya Press Club on Saturday.


Entertainment »

Kazi Shoma coming with original song


Entertainment Report :Singer Kazi Shoma has been engaged with music for many days. She got praise for rendering songs in and outside the country. She has an inner want to render an original song. But she could not do it for various reasons. Before Corona pandemic she wanted to fulfil ...

Editorial »

EC can`t avert responsibility of criminal nexus that makes fake NIDs


THE Election Commission is struggling to check forgeries of National Identity Cards while it suspects that a group of voter registration officers and data entry operators are involved in the scam. Several probe teams formed on various occasions have found that people are forging NIDs to gain illegal benefits, including ...

Football »

Messi says Suarez deserved more from Barcelona in move to Atletico Madrid


BBC Online :Lionel Messi says Luis Suarez deserved a better send-off from Barcelona but that he is "no longer surprised" by the club's treatment of the striker.Suarez has joined Atletico Madrid after being told he was not in new Barca boss Ronald Koeman's plans.Earlier this month, Messi said he would ...

Entertainment »

Pori Moni to play Pritilata’s role in movie


Sheikh Arif Bulbon :Popular film actress Pori Moni has signed in to play the role of Pritilata Waddedar, who was the first Bengali revolutionary martyred woman in the Subcontinent. Affiliation of Pori Moni with the movie was announced on the death anniversary of Pritilata Waddedar on September 24.Golam Rabbani wrote ...

Editorial »

Corruption is no problem but giving too many extensions is bad


AKM Fazlullah, the 79-year-old Managing Director of Chattogram Water Supply and Sewerage Authority, is likely to get extension for another three-year term after serving the position for nine years.In 2009, Fazlullah was first appointed as the chairman of the CWASA, 11 years after he had gone into retirement as an ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news