BB cuts pvt sector credit growth

Hossen Sohel of DOT
Bangladesh Bank has announced its monetary policy for the second half of the current fiscal year 2018-19 (FY19), reducing private sector credit growth to 16.5%, reports Dhaka Tribune. Bangladesh Bank Governor Fazle Kabir announced the monetary policy at his office in Dhaka yesterday. For the July to December period of 2018, the central bank had set private sector credit growth at 16.8%.
According to the policy, balancing inflation and output risks—given the near-term domestic and global inflation rates, growth outlook, and the associated risks—repo and reverse repo rates will be maintained at current levels of 6% and 4.75%, respectively, for the second half of FY19.
This monetary program sets broad money (M2), domestic credit (DC), and private sector credit growth ceilings at 12%, 15.9%, and 16.5%, respectively, This is sufficient to attain the real GDP growth and CPI inflation projections of the FY19 national budget which are 7.8% and 5.6%, respectively.