BB brings changes in MPS for FY21
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Bangladesh Lender (BB) has taken some changes in funds and credit line of its Monetary Plan Declaration (MPS) for the fiscal 2020-21, taking into account the amount of money market and the entire macroeconomic situation.
The decisions were taken at the 50th assembly of the Monetary Policy Committee (MPC) held at the Bangladesh Bank (BB) headquarters in the city on Sunday with BB Governor Fazle Kabir in the chair, said a news release today.
As per the news release, the central bank has already brought straight down its GDP progress projection to 7.40 per cent from its earlier projection of 8.20 % for the FY’21 mainly as a result of ongoing Covid-19 pandemic.
The revisions will not, however, prevent the BB from pursuing the ongoing expansionary monetary policy until June up coming, said the release.
It added that the BB has adjusted some programmes upwards plus some downwards, and kept some methods unchanged in the wake of the advancements emerged in the money market.
The mark of the country’s aggregate money supply, measured by broad money (M2), has been re-fixed at 15 % rather than 15.60 % earlier.
However, the progress in credit rating to the private sector has remained unchanged at 14.8 per cent, considering the opportunity of normal of monetary activity in the near future after the result of the coronavirus pandemic.
The BB has also kept unchanged the twelve-monthly average inflation rate at 5.40 % for the fiscal 2020-21.
It revised straight down the prospective of Net Foreign Possessions (NFA) at 20.1 per cent until June 2021 rather than 30.8 per cent set for December, 2020.
The central bank made an upward adjustment of net domestic assets at 13.6 per cent from December’s actual growth of 9.8 per cent.
The reserve money or the currency in circulation, the banks’ deposit with the central bank and the other deposits with the central bank are placed unchanged at 13.5 %.
The growth of the reserve money was 21.3 % in December 2020 (actual).
The central bank has projected the government’s borrowing at 31.7 % in the revised the monetary insurance plan programmes for the fiscal 2020-21.
The growth in public areas sector credit until December 2020 was 17.2 per cent (net).
Source: https://www.daily-sun.com
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