Bangladesh Bank (BB) Chief Economist Biru Paksha Paul at a seminar yesterday opined to reduce the rate of interest of savings bond to boost up loan flow in private sector, reports BSS.
“The average rate of interest for BB’s loan is 15 per cent, which is hampering the desired investment, but if the rate of interest is reduced, the investment would be boosted,” said the BB chief economist while presenting a keynote paper at the seminar.

He also said “The central bank has to be given full regulatory authority to control the rate of interest for making the monetary policy effective, which would also help the BB to cut the interest rate”.
Board of Investment (BoI) organised the seminar on the State of the Economy in city’s Dhaka Reporters’ Unity.
Biru Paksha Paul said controlling inflation as one of the major tasks, and the BB is doing the job well in last few years but “the existing rate of interest is barring the investment”.
Criticizing the existing rate of interest, he said the BB has forwarded its recommendation to the government to reduce it.
The BB chief economist hoped the GDP would be 7 per cent and poverty line would come below 10 per cent after the implementation of the ongoing mega projects in infrastructure and power sectors.
Director of Dhaka Mass Rapid Transit Project Mohammad Nurul Ameen and BIDS Senior Research Fellow Dr Naznin Ahmed also spoke on the occasion with BoI Chairman Dr S A Samad in the chair.
Speaking on the occasion as chief guest, Energy Adviser to the Prime Minister Towfiq-e-Elahi Chowdhury also opted for the reduction of the rate of interest to heighten investment.
Apart from the rate of interest, he emphasised ensuring uninterrupted power and gas connection along with 
infrastructural facilities.
“The present government has already developed the infrastructural facilities significantly and now 70 per cent population of the country is getting power connection which was 45 per cent in 2009,” added the adviser.