Bangladesh economy is in that critical phase where it requires a ‘push’ to break out of the 6% trap. In the absence of any major political setback, GDP growth is expected to pick up from 6.5% in FY15. We might need to wait a bit longer than usual to see the desired reflection of falling lending rate on credit growth and Investments. Problem-ridden financial sector, abundance of foreign loans for quality borrowers and an overall subdued investment sentiment due to infrastructural deficiency will mute the effect of low interest rate on credit growth and investments.

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Categories: Economy

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