Bangladesh Bank won't tighten further the monetary policy: Governor

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Dhaka, Sept 17 (UNI) Bangladesh Bank Governor Dr Salehuddin Ahmed today said Bangladesh Bank is not going to further tighten its monetary policy as per the prescription of International Monetary Fund (IMF) to curb inflation.

''We are not tightening the monetary policy further as per their prescription. What they are saying is not important, we'll take our own decision,'' he told reporters, following a meeting with a visiting IMF delegation.

The IMF delegation, led by IMF Adviser for Asia Pacific Department Thomas Rumbough, will conclude its two-week mission in Bangladesh tomorrow reviewing the economic situation of the country, particularly in the changed circumstances.

Dr Salehuddin said Bangladesh Bank has made it clear to the IMF delegation that rising inflation is obviously a challenge for the country, but at the same time economic growth is also a matter of concern.

''It'll not be acceptable to us if growth is hampered due to measures taken to tackle inflation,'' he said, adding that the central bank would take any monetary policy measures necessary to invigorate the private sector.

''We're not tightening the monetary policy, but trying to utilise the excess liquidity in the banking system,'' he said, stressing the need for private sector development and employment generation.

He listed inflation, post-flood rehabilitation, employment creation and private sector development as the major economic targets at present.

Replying to a question, Dr Salehuddin said the government is not going to sign any deal with IMF this time.

A senior Bangladesh Bank official said the government has already said no to the Policy Support Instrument (PSI) agreement with IMF and they were now negotiating with the government on the possibility of extending the Poverty Reduction Growth Facility (PRGF).

UNI

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