Dhaka, March 7 -- The flow of formal credit to the private sector declined again, with its yearly growth slowing to 9.95 per cent in January 2024, as the central bank tightened its monetary policy to combat higher inflation.

The fall, coming after a 10.13 per cent growth in December, 2024, was due to banks becoming more cautious and private borrowers losing fund appetite, particularly in January, which coincided with the country's 12th parliamentary election, officials and bankers said.

According to the latest data of Bangladesh Bank (BB), the outstanding balance of private sector credit stood at Tk 1.57 trillion in January 2024, while it was Tk 1.43 trillion a year ago.

The credit growth in January almost reached the BB's projection o...