Private sector getting more loans for relaxed monetary policy
Analysts say at BIBM workshop
The new monetary policy has opened up opportunities for the private sector to take large amount of loans, said speakers yesterday.
Investors have already started to reap the benefit of the relaxed monetary policy, they said at a workshop at the auditorium of the Bangladesh Institute of Bank Management (BIBM) in Dhaka.
The monetary policy for July-December this year was unveiled on July 31.
The monetary policy was announced keeping the higher GDP growth in consideration, said Faisal Ahmed, chief economist of the Bangladesh Bank, while presenting the keynote paper.
As a result, the private sector will get adequate financing which will help the government achieve the expected growth, he added.
The private sector credit ceiling was fixed at 16.8 percent, which, the chief economist said, is quite enough to achieve more than 7 percent growth.
The private sector credit growth slowed down in recent months amid liquidity crisis in the market.
The growth rate dropped to an 18-month low of 15.87 percent in July, according to central bank data. The growth was 1 percentage point lower than the central bank's target of 16.8 percent for the first half of the current fiscal year. Toufic Ahmad Choudhury, director-general of BIBM, also spoke.