BB’s Chief Economist Stresses Need for Rule-Based Monetary Policy
Chief Economist of the Bangladesh Bank Dr Akhtar Hossain today said that a rule-based monetary policy must be formulated to ensure long-term stability. "We must formulate a rule-based monetary policy to ensure long-term stability. This will allow us to maintain inflation stable at around 4% in the future," he said.
Akhtar was addressing an event today in the capital as the chief guest. The Centre for Macroeconomic Analysis (CMEA) of the Policy Research Institute of Bangladesh (PRI), in partnership with the Department of Foreign Affairs and Trade (DFAT) of the Australian Government, hosted the June-July edition of its Monthly Macroeconomic Insights (MMI) today at PRI's conference room in the capital.
Speaking on rising inflation, the BB chief economist said, "We are currently working to bring down our inflation rate from 9% to 3-4%." Dr. Khurshid Alam, Executive Director of PRI, chaired the event and gave the opening remarks. In his remarks, Dr. Alam expressed his optimism that, despite various challenges, the Bangladeshi economy continues to move in the right direction, said a press release.
Dr. Ashikur Rahman, Principal Economist at PRI, delivered the keynote presentation. Dr. Rahman said, "The challenging investment climate has been one of the most serious impediments to economic growth in Bangladesh in recent years. Without addressing deep-rooted constraints in energy supply, logistics, and political uncertainty, it will be difficult to unlock new investment opportunities,"
In this context, Ashikur said it is neither accurate nor sufficient to singularly attribute slower growth to a tight monetary stance. "The evidence suggests that unless structural bottlenecks in the real economy are tackled alongside financial policies, Bangladesh can't meaningfully stimulate investment and sustain growth."
Special guests at the event included Dr. Ahmad Ahsan, Director of PRI, and Joshua Gacutan, Second Secretary (Economic) at the Australian High Commission. Dr. Ahsan emphasized that the interim government would prioritize addressing the pressing challenges during its tenure.
The distinguished panel featured Dr. Nasiruddin Ahmed, Former Chairman of the National Board of Revenue (NBR); Anwar-Ul-Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI); and Habibullah N. Karim, Senior Vice President of the Metropolitan Chamber of Commerce & Industry (MCCI).
An open discussion ensued, where participants exchanged views on monetary policy, inflation management, and the digitalization of revenue administration. The event concluded with closing remarks from Dr. Khurshid Alam.
