Bangladesh Bank forecasts steady economy for fiscal year 2017

Staff Correspondent | Published: 00:18 am, 06 Jan 2017, Fri

Bangladesh Bank forecasts steady economy for fiscal year 2017

The economy will maintain a steady growth in financial year (FY) 2017 considering its present economic indicators, says Bangladesh Bank (BB).     "All economic indicators including inflation, foreign exchange reserve, exchange rate and credit flow in private sector are in broadly in line with the targets for 2016-17 financial year (FY17)", said BB economic adviser Dr M Akhtaruzzaman, reports BSS on Thursday.  According to the central bank, the point to point inflation was 5.38 per cent in November, which is a little less than the target of 5.8 per cent for 2016-17 FY17.  BB reserve hit a record $32 billion in 2016, which is enough to cover the country’s six months’ import cost.  The exchange rate of Taka against Dollar was Tk 78.83 in December2016. In December 2015 it was Tk 78.66. The private credit growth also grew by 15.34 per cent in the first quarter of FY 17, close to the fiscal target of 16.5 per cent. "We are very much hopeful to achieve the 16.5 percent credit growth at the end of the FY17 as the investment is increasing," the economist said. Akhtaruzzaman, also executive director of BB, said the lending rate is now about 10 per cent which is the lowest in the recent times.  BB's chief spokesperson Subhankar Saha also said inflation rate, record foreign exchange reserves and export earnings were in comfortable position.