Private sector credit growth target lowered to 10pc from 11pc

Business Report :
The central bank on Wednesday cut the private sector credit growth target to 10 percent from 11 percent to lower demand in an economy that has been witnessing higher inflation for the past two years.

The announcement comes as the Bangladesh Bank unveiled the monetary policy for the second half of the current fiscal year during an event at the central bank headquarters in the capital.

It also raised the benchmark policy rate by 25 basis points to 8 percent.

The projected growth in public sector credit is 27.8 percent, down from 31 percent set for the current financial year earlier, reflecting the government’s selective expenditure on priority projects as part of its austerity policy measures, which are expected to reduce credit demand.