Bangladesh Bank to announce new Monetary Policy end of this month | daily-sun.com

Bangladesh Bank to announce new Monetary Policy end of this month

Sun Online Desk     12th July, 2017 10:39:13 printer

Bangladesh Bank to announce new Monetary Policy end of this month

Bangladesh Bank is likely to announce its Monetary Policy Statement (MPS) for the first half of the financial year 2017-18 (FY18) at the end of this month, BSS reports.

 

"We are going to announce MPS for the first half of the fiscal at the end of this month. The MPS, however, will be finalised on the basis of the national budget for the 2017-18 financial year and the fiscal policy directions," BB Deputy Governor Abu Hena Mohd.

Razee Hassan said.

 

He said BB is holding meeting with stakeholders including economists to make the policy more effective for the country's economic development.

 

"Different proposals have already come from the stakeholders. We will finalise the MPS after analysing the suggestions," he added.

 

Talking to the BSS about the MPS, World Bank lead economist in Dhaka Dr Zahid Hossain said there is no reason for any major changes in the upcoming monetary policy.

 

He said the government is likely to face revenue shortfall in the fiscal as the Value Added Tax (VAT) and Supplementary Duty Act, 2012 has been held up for the next two years. Moreover, the government has been fixed borrowing target from the banking system for the FY 18, he added.

 

According to the national budget for FY18, the government has set a target at Taka 28,203 crore for borrowing from banking system.

 

The economist said BB will have to accommodate the bank borrowing target to meet the revenue shortfall.

 

Razee Hassan said like in previous years, BB will keep borrowing provision for the government in the upcoming MPS.

 

The central bank on January 29 this year unveiled the MPS for the second half of the outgoing 2016-17 (FY17) financial year. Like the previous MPS, the current one also focused on attaining higher growth with lower inflation.


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