Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016

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Transcript of Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016

Page 1: Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016
Page 2: Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016
Page 3: Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016
Page 4: Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016
Page 5: Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016

8.55%

6.05%

5.41%

6.41%

6.28%

6.79%

(For the period of July 2014 to December 2015)

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Target: 6.20%Achievement: 6.19%

Target: 6.07%Achievement: 5.61%*

*Information collected from trading economics for the month April of 2016

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Salary HikeDecreased Fuel Price

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Macro Stability

Downward trend in inflation

Investment stimulation

To achieve 7% GDP growth target

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Target15% Broad money growthAchievement 14.2% Broad money growth

Target15% Broad money growthAchievement Not known yet

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Repo and Reverse RepoUnchanged7.25% and 5.25%

Repo and Reverse RepoLowered6.75% and 4.75%

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Remaining cautious on inflation

July-December, 2015

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January-June, 2016

To stimulate investment

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July 2014 November 2015

Deposit Rate 7.71% 6.46%

Lending Rate 12.84% 11.37%

Average Spread 5.13% 4.81%

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(Jan-June, 2016)

State Owned banks’ lending ratesLowered by 1.5% to 2%Lowering Sanchaypatra Rates

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Broad Money Tk. 9099 bnBroad Money Tk. 9052 bn

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FY 2015’s 13.2% Private Credit Growth

6.5% GDP Growth

FY 2016’s 15% Private Credit Growth

7% GDP GrowthProjected

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Increased buying for both the period

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FY 2015 2015 (July-Dec)

2016 (Jan-June)

Current Account

Surplus USD 2 bn

Deficit USD 3.55 bn

Surplus USD 0.96 bn

Overall Balance

Positive USD 4.16 bn

Positive USD 1.13 bn

Positive 2.28 bn

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Focused on Selective Easing

More Cautious Outlook

Focused on Lowering Policy Interest Rate

Investment Stimulation Strategy

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