New MPS will help pvt, financial sectors: DCCI

Business Report :
Dhaka Chamber of Commerce and Industry (DCCI) President Barrister Md Sameer Sattar has said the Bangladesh Bank’s monetary and credit programmes (MPS) for the second half of FY23 will help both the private and financial sector to turn around. The MPS is primarily aimed at curbing inflation and stabilising the foreign exchange reserve, the DCCI president said in a press release received Monday.
Set by the government, the public sector credit growth is at 37.7 per cent for H2 of FY23, which was 26.6 per cent in H1 of FY22. The set target for public sector credit may cripple new borrowing and investment by the private sector.
In order to reduce public sector borrowing, efficiency and good governance need to be continuously ensured through reduction in government expenditure by way of austerity measures and prioritising between development projects, the release added. Also, in the current market condition, the proposed relaxation of lending rate cap for consumers’ credit and complete removal of the deposit floor rate may encourage savings and smoothen the liquidity reserve of banks.