Hasnat proposes shorter monetary policy cycle; BB governor calls it ‘a very good suggestion’

A proposal to announce Bangladesh Bank’s monetary policy every three months, instead of the existing six-month cycle, was raised today at the first meeting of the parliamentary standing committee on the Ministry of Finance, held at the parliament complex.

Meeting sources said NCP MP Hasnat Abdullah proposed both shortening the cycle and forming a committee to oversee monetary policy. Hasnat later confirmed the matter while speaking to this correspondent.

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Currently, Bangladesh Bank issues its Monetary Policy Statement (MPS) every six months, outlining measures to support government policies for inclusive growth and poverty reduction while maintaining price stability.

The meeting reviewed the framework of Bangladesh Bank’s monetary policy and discussed gradually shifting from the current interest rate-based approach to an inflation-targeting policy to achieve long-term economic goals.

Bangladesh Bank Governor Mostaqur Rahman described the proposal for a three-month cycle as “a very good suggestion” and said it should be adopted. However, he did not comment on the proposal to form a monitoring committee.

The Parliament Secretariat said the meeting was chaired by Committee Chairman Mushfiqur Rahman MP. Bangladesh Bank presented a detailed paper on “Bangladesh Bank and Monetary Policy,” after which members exchanged views on the future of the country’s monetary policy and financial sector.

Committee members present included Finance Minister Amir Khosru Mahmud Chowdhury, Chief Whip Md Nurul Islam, State Minister for Local Government Mir Shahe Alam, Md Jalal Uddin, Moinul Islam Khan, Md Shahadat Hossain, Md Saiful Alam, Syed Zainul Abedin, and Md Abul Hasnat.

Also in attendance were the secretary of the Financial Institutions Division, the secretary of the Internal Resources Division, the acting chairman of the National Board of Revenue, officials from relevant ministries, and representatives of the Jatiya Sangsad.