The central bank has adjusted the private sector credit growth target, lowering it from 11% to 10%, as part of measures to mitigate inflationary pressures in the economy. This decision was unveiled during the announcement of the monetary policy for the second half of the current fiscal year.
Concurrently, the benchmark policy rate was increased by 25 basis points to 8%. The public sector credit growth target is set at 27.8%, down from the earlier 31%, aligning with the government’s austerity measures and selective expenditure on priority projects. The Bangladesh Bank aims to guide credit flow into productive and employment-generating sectors, with overall domestic credit growth projected to reach 13.9% by June 2024.
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