The upward trend of private sector credit put positive growth for two months in a row.
The credit rate increased by 3 percent of 8.38 per cent in July. The Bangladesh Bank has set the target of credit growth in the private sector at 14.8 per cent, mentioned in its monetary policy of FY 2021-2022.
However, since August this year, the Bangladesh Bank has sold $305 million dollars to banks, according to the central bank’s data.
Due to the economic crisis throughout the covid pandemic, the private sector remained sluggish and saw a steady decline last fiscal year. The credit growth was 8.40 per cent in the last fiscal year against the monetary target of 14.8 per cent.
Private credit growth was 9.20 per cent in July last year, which dove to 7.55 per cent in May this year as the demand for loans decreased.
Source: The Business Standard