Frequent Research Report

Highlights: Bangladesh Bank MPS H1 FY15

Please find enclosed herewith the Highlights of the Bangladesh Bank MPS H1 FY15.

Key Scrutiny:

MPS action confirms that the near term focus of the BB has clearly moved to according higher priority to inflation management over the immediate concerns regarding moderating economic growth.

Real GDP growth expected to firm up from 6.2%-6.5% in FY14-15, with a government estimate of 7.3%.

Bangladesh Bank initiative to attach the foreign loans with the private sector credit growth in the monetary policy for July-December 2014 would squeeze the profitability of the local scheduled banks in future.

The BDT further appreciate against Dollar in next fiscal year, which reduce raw materials cost of import based companies.

Going ahead, we expect major policy rate will unchanged up to FY14-15.

Government borrowing from the banking sector is expected to overhaul in the FY14-15, as commencement of major infrastructure project like Padma Bridge and elevate express in FY14-15.