The Bangladesh Bank has unveiled its monetary policy for the first half of FY2025, keeping the policy rate unchanged.
The central bank published the new policy on its website on Thursday, amidst a journalist boycott of Bangladesh Bank in response to the decision to restrict reporters’ entry.
In the new monetary policy, the central bank has relaxed restrictions on opening import letters of credit, lifting the requirement for advance cash deposits for all products except for vehicles, fruits, flowers, and cosmetics.
The new policy maintains the growth rate of private sector loans as before. As of June, the private sector loan growth rate stood at 9.8%, which has been maintained until December.
On the other hand, the growth rate of government sector loans reached 12.8% at the end of June.
In the new monetary policy, the target for government loan growth has been increased to 14.2%, paving a way for the government to borrow more from the banking sector.
Additionally, the central bank has announced that it will not increase the money supply by printing new currency (reserve money). The growth rate of reserve money has been reduced from 7.9% in June to 2% in December.
