DHAKA, Feb 24, 2019 (BSS) – Dhaka Chamber of Commerce and Industry (DCCI) has called for announcing more private sector friendly Monetary Policy Statement (MPS) to accelerate the country’s economic growth.
The trade body made the call at a dialogue on “Monetary Policy Statement: Implication on Private Sector” at DCCI Auditorium on Saturday, said a press release today.
Governor of Bangladesh Bank (BB) Fazle Kabir was present as the chief guest while DCCI President Osama Taseer delivered the welcome speech.
Fazle Kabir said the central bank always focuses on increased private sector credit growth as the private sector is the engine of economic growth.
“We targeted private sector credit growth to 16.5 percent which went down to 13.3 percent by December 2018 due to the national election,” he said.
Regarding higher rate of interest on national savings certificates, the BB governor said that this tool is for small investors as part of social safety net and as a pension fund for private sector undertaken directly by the government.
Regarding NPL control, he said banks should be watchful about credit quality and monitor whether the credit taken is being utilized properly.
Osama Taseer said inflation rate, interest rate, currency exchange rate, broad money and credit growth target at the MPS are closely associated with the private sector development.
He also said that the recent MPS looks cautionary though salient features of MPS like unchanged Advance Deposit Ratio (ADR), unchanged Cash reserve ratio, 6 percent repo, 4.75 percent reverse repo, 16.50 percent private sector credit growth, 10.9 percent public sector credit growth and 15.90 percent domestic credit growth targets, which may enrich the private sector credit flow and scale up the industrialization, employment and trade resulting into expected GDP growth during this fiscal year.
Among others, DCCI Vice President Imran Ahmed, DCCI Directors Andaleeb Hasan, Alhaj Deen Mohammed, Enamul Haque Patwary, Hossain A Sikder, Engr. Md. Al Amin, M Rashedul Karim Munna, Shams Mahmud and SM Zillur Rahman and BB General Manager Dr M Habibur Rahman were present on the occasion.