The chamber said due to the tight policy announced by the Bangladesh Bank on July 12, rate of interest on bank loans would rise. "Such a measure would further increase the cost of doing business and may further slow down private sector growth," the DCCI said in a statement.

The chamber said the proposed price hikes of fuel, electricity and gas would also push up the burning prices of essentials directly.

It also said private sector enterprises, especially the SMEs, are already under pressure and affected by inadequate power supply, fragile and inefficient infrastructure, administrative bottlenecks, political uncertainty, shortage of skilled human resources and soaring energy prices. And above all, shortage of capital at reasonable interest rate will hinder growth potential, the statement added.

"Ultimately this policy may hinder the achievements of PRSP and MDG goals," the chamber said urging the government to adopt a coordinated approach in this regard.

In order to curb inflation, the government should restore the supply chain and distribution channels, remove other supply side constraints, provide adequate inputs like fertilizer to farmers at proper prices, secure border to stop fertilizer smuggling, stop systems loss of power, gas and petroleum, and restore private sector confidence through public-private partnership.

The government should provide all possible policy supports and facilitate import of essential commodities rather than tightening monetary policy and raising interest rate, the DCCI added.