Comparative Study of Monetary Policy Statements of Bangladesh Bank for the Fiscal Year 2016

8.55%

6.05%

5.41%

6.41%

6.28%

6.79%

(For the period of July 2014 to December 2015)

Target: 6.20%Achievement: 6.19%

Target: 6.07%Achievement: 5.61%*

*Information collected from trading economics for the month April of 2016

Salary HikeDecreased Fuel Price

Macro Stability

Downward trend in inflation

Investment stimulation

To achieve 7% GDP growth target

Target15% Broad money growthAchievement 14.2% Broad money growth

Target15% Broad money growthAchievement Not known yet

Repo and Reverse RepoUnchanged7.25% and 5.25%

Repo and Reverse RepoLowered6.75% and 4.75%

Remaining cautious on inflation

July-December, 2015

January-June, 2016

To stimulate investment

July 2014 November 2015

Deposit Rate 7.71% 6.46%

Lending Rate 12.84% 11.37%

Average Spread 5.13% 4.81%

(Jan-June, 2016)

State Owned banks’ lending ratesLowered by 1.5% to 2%Lowering Sanchaypatra Rates

Broad Money Tk. 9099 bnBroad Money Tk. 9052 bn

FY 2015’s 13.2% Private Credit Growth

6.5% GDP Growth

FY 2016’s 15% Private Credit Growth

7% GDP GrowthProjected

Increased buying for both the period

FY 2015 2015 (July-Dec)

2016 (Jan-June)

Current Account

Surplus USD 2 bn

Deficit USD 3.55 bn

Surplus USD 0.96 bn

Overall Balance

Positive USD 4.16 bn

Positive USD 1.13 bn

Positive 2.28 bn

Focused on Selective Easing

More Cautious Outlook

Focused on Lowering Policy Interest Rate

Investment Stimulation Strategy