Bangladesh Bank will keep up its cautionary stance in new monetary policy statement (MPS), which will be announced at the end of the current month (July).
"We will not make any major change to the policy while announcing the MPS for the first half of the financial year 2017-18 (FY18)," a senior BB official told the New Nation.
Responding to a question about the date of announcement of the MPS, the BB official said, no decision was taken yet in this regard. "But it will be announced at end of this month (July)," he added.
"The date for the MPS announcement will be fixed at a meeting of MPS committee which will be held on Sunday at the BB headquarters," he added.
Talking to the NN about preparation of the MPS, BB Deputy Governor Abu Hena Mohd Razee Hassan said the MPS would be finalised on the basis of the national budget for the 2017-18 financial year and the fiscal policy directions.
He said BB held meetings with stakeholders including economists to make the policy more effective for the country's economic development.
"Different proposals have already come from the stakeholders. We are finalising the MPS after analysing the suggestions," he added.
Talking to the NN about the MPS, World Bank (WB) lead economist in Dhaka Dr Zahid Hossain said there is no reason for any major changes in the upcoming monetary policy.
He said the government is likely to face revenue shortfall in the fiscal as the Value Added Tax (VAT) and Supplementary Duty Act, 2012 has been held up for the next two years.
Moreover, the government has fixed the borrowing target from the banking system for the FY 18, he added.
According to the national budget for FY18, the government has set the target at Taka 28,203 crore for borrowing from the banking system.
The WB economist said BB will have to accommodate the bank borrowing target to meet the revenue shortfall.
Razee Hassan said like in the previous years, BB will continue its borrowing provision for the government in the upcoming MPS.
The central bank on January 29 this year unveiled the last MPS for the second half of the outgoing 2016-17 (FY17) financial year. Like the previous MPS, the last one also focused on attaining higher growth with lower inflation.

Bangladesh Bank will keep up its cautionary stance in new monetary policy statement (MPS), which will be announced at the end of the current month (July).
"We will not make any major change to the policy while announcing the MPS for the first half of the financial year 2017-18 (FY18)," a senior BB official told the New Nation.
Responding to a question about the date of announcement of the MPS, the BB official said, no decision was taken yet in this regard. "But it will be announced at end of this month (July)," he added.
"The date for the MPS announcement will be fixed at a meeting of MPS committee which will be held on Sunday at the BB headquarters," he added.
Talking to the NN about preparation of the MPS, BB Deputy Governor Abu Hena Mohd Razee Hassan said the MPS would be finalised on the basis of the national budget for the 2017-18 financial year and the fiscal policy directions.
He said BB held meetings with stakeholders including economists to make the policy more effective for the country's economic development.
"Different proposals have already come from the stakeholders. We are finalising the MPS after analysing the suggestions," he added.
Talking to the NN about the MPS, World Bank (WB) lead economist in Dhaka Dr Zahid Hossain said there is no reason for any major changes in the upcoming monetary policy.
He said the government is likely to face revenue shortfall in the fiscal as the Value Added Tax (VAT) and Supplementary Duty Act, 2012 has been held up for the next two years.
Moreover, the government has fixed the borrowing target from the banking system for the FY 18, he added.
According to the national budget for FY18, the government has set the target at Taka 28,203 crore for borrowing from the banking system.
The WB economist said BB will have to accommodate the bank borrowing target to meet the revenue shortfall.
Razee Hassan said like in the previous years, BB will continue its borrowing provision for the government in the upcoming MPS.
The central bank on January 29 this year unveiled the last MPS for the second half of the outgoing 2016-17 (FY17) financial year. Like the previous MPS, the last one also focused on attaining higher growth with lower inflation.

Bangladesh Bank (BB) received 75 project proposals involving about US$ 35.29 crore till June 30 from export-oriented companies to facilitate long-term financing under the World Bank funded Financial Sector Support Project (FSSP).
"We have already sanctioned 43 proposals with $19.28 crore, of which $10.01 crore of 31 proposals has been disbursed, the rest of the sanctioned amount is under the process of disbursement," a BB official told on Thursday.
Out of the total sanctioned funds, some have been disbursed partially and some more are under the process as the amounts will be disbursed through opening Letter of Credit (LC) for importing machineries, he added.
Out of the total applications received through commercial banks, the central bank is processing three proposals and 16 proposals have been closed by the World Bank and the Bangladesh Bank for 'substantial impact on environment and shipping', the BB official said.
He said BB has also declined seven proposals with $2.39 crore for various reasons while six proposals with $2.55 crore have been discontinued by the participating financial institutions (PFIs).
BB also refinanced the five proposals with $13.28 lakh, he added. "We have submitted proposals of four companies involving $3.46 crore, of which two companies have already been given their sanctioned funds amounting to $2.01 crore” said Executive Vice President of the Southeast Bank Limited (SEBL) Abdul Baten Chowdhury.
The four companies are T-Design Knitwear Limited, SNOWTEX, Jahan Marine Private Limited and KC Jacket Wear Company.
Out of the total submitted proposals, Baten Chowdhury, also head of the Principal Branch of the bank, said, two proposals have already been approved and the rest two proposals awaits approval.

Out of the two approved proposals, Senior Assistant Vice President of SEBL M Roushon Ali said, T-Design Knitwear Limited has already got its sanctioned amount and imported capital machineries.
BB under the auspices of International Development Association (IDA) of the World Bank would provide a total of $35 crore under FSSP, which would play a pivotal role in meeting the growing demand for long-term financing for productive sectors in the country.
BB has signed separate Participating Financial Institutes (PFI) agreements with 31 banks to distribute the long-term finance among the country's export oriented industries.
Of the total amount, World Bank will provide $30 crore and rest of the amount will come from BB's own fund. The tenure of the project is July 1, 2015 to March 31, 2021.
Under the FSSP fund for long-term financing, the banks can lend money for ventures in the industrial productive sectors for tenures of five to 10 years with the condition that the banks would pay interest rate between 2.50 percent and 3.50 percent, including LIBOR (London Inter Bank Offered Rate) depending on the category of banks.
The interest is being fixed considering the respective bank's CAMELS (Capital, Assets quality, Management, Earning, Liquidity, and Sensitivity) rating, a recognized international rating system that bank supervisory authorities use in order to rate financial institutions.

Md. Obayed Ullah Al Masud, Managing Director and Deputy Managing Director of Sonali Bank Limited ink a deal beween themselves of \"Annual Performance Agreement 2017-18\" at its head office on Thursday. Md. Ashraful Moqbul, Chairman and all General Manage

The government has promoted 12 general managers (GMs) to deputy managing directors and appointed them to different state-owned banks and financial institutions with a view to bringing dynamism to the banking sector.
The newly promoted deputy managing directors (DMDs) were holding positions as general managers at different state banks.
The Ministry of Finance issued the promotion order through a circular issued on Tuesday, directing the bank authorities concerned to make these promotions effective immediately.
"The newly promoted DMDs will hold the posts till further notice," said the circular signed by the ministry's Deputy Secretary Md Matiur Rahman.
According to the circular, Abdul Majid Sheikh, GM of Rupali Bank has been appointed as DMD to Rupali Bank followed by Syed Ashraf Ul Alam from Sonali Bank to Sonali Bank, Bishnu Pada Chowdhury from Rupali Bank to Rupali Bank, Md Foroz Ali of Janata Bank to Janata Bank, Tazrina Ferdousi of Agrani Bank to Bangladesh Krishi Bank, Md Nuruzzaman of Rupali Bnak to Bangladesh Krishi Bank, AKM Hamidur Rahman of Bangladesh Development Bank to Bangladesh Development Bank, Kazi Alamgir of Agrani Bank to Karmasangsthan Bank, Pankaj Roy Chowdhury of Agrani Bnak to Bangladesh Development Bank, Md Yusuf Ali of Agrani Bank to Sonali Bnak, Md Showkat Osman from Agrani Bank to Sonali Bank and Md Mosaddek Ul Alam of Janata Bank to the Investment Corporation of Bangladesh.