Credit growth instills optimism into economy

Md Habibur Rahman, the new chief economist of Bangladesh Bank, said that he would give utmost priority to addressing the challenges that arose from the coronavirus pandemic.

"I will try my best to provide policy efforts to deal with the coronavirus-induced challenges in an effective manner," he said in an interview with The Daily Star yesterday.

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The BB appointed Rahman as its new chief economist on February 13. The board of directors of the central bank decided to appoint him for the position at its meeting on January 20. He is the fifth chief economist of the central bank.

The country is now reeling under heavy inflationary pressures stemming from the global supply chain disruptions, said Rahman, who joined the central bank in 1990.

"We will address the issue with the highest importance such that the common people get some respite from the price escalation," he added.

Asked about the performance of the country in the first half of this fiscal year, he said Bangladesh has fared reasonably well in terms of reviving domestic demand and maintaining strong growth in export earnings despite the volatility in the global economy.

Private sector credit growth has rebounded strongly, which is another sign of economic recovery, Rahman said.

"This has also created optimism for the economy to stay the course and improve further sidestepping the pandemic jitters."

The credit growth target set by the central bank will likely be achieved because of the recovery in demand, said Rahman, who completed his post-graduation in economics from Jahangirnagar University.

He obtained his master's degree in economics and earned a PhD in applied economics respectively from the Eastern Michigan University and the Western Michigan University of the United States.

Rahman is scheduled to hold the post of the chief economist of the BB until March 2025 when he will retire.

Mustafa Kamal Mujeri was the first chief economist of the central bank.