Bangladesh, Aug. 6 -- A temporary increase in private-sector credit growth could help revive the country's economic activity without significantly fuelling inflation or pushing up interest rates, according to a new Bangladesh Bank analysis.

Advertisement The findings come as the central bank prepares to roll out a Tk 600-billion-credit stimulus package to support economic recovery and employment.

The analysis, titled "Macroeconomic Implications of Credit Stimulus Packages: A Narrative Sign Restriction Approach", examines how the additional credit could impact output, inflation, money-market rates, lending rates and private-sector credit growth.

The study has been prepared by Dr Saidul Islam, Joint Director of the Chief Economist's Uni...