Dhaka: The Parliamentary Standing Committee on the Finance Ministry on Sunday held its first review of Bangladesh Bank’s monetary policy framework and discussed the future direction of monetary policy, including a gradual transition from the existing interest rate-targeting framework to an inflation-targeting regime. The meeting was chaired by Committee Chairman Mushfiqur Rahman and held at the Jatiya Sangsad Bhaban.

According to United News of Bangladesh, Bangladesh Bank delivered a detailed presentation on its monetary policy during the meeting, outlining the existing policy framework, its implementation, and future priorities. Following the presentation, committee members engaged in extensive discussions on the issues raised and exchanged views on the country’s monetary policy and financial sector.

The presentation emphasized the necessity of an appropriate monetary policy framework to achieve the government’s vision of transforming Bangladesh into a trillion-dollar economy. To support that goal, Bangladesh Bank highlighted the need for a gradual transition from the current interest rate-targeting monetary policy framework to an inflation-targeting framework. The central bank noted that several emerging economies have successfully stabilized inflation in recent years by adopting inflation-targeting monetary policy frameworks, suggesting that Bangladesh could benefit from a similar approach.

As part of the proposed transition, the presentation suggested amending the Bangladesh Bank Order, 1972, to make it more contemporary and better suited to the requirements of an inflation-targeting monetary policy regime. The committee members discussed the presentation in detail and sought clarifications on various aspects of the proposed policy direction and the implementation of monetary policy. They also exchanged views on issues relating to macroeconomic stability, inflation management, and the central bank’s role in supporting sustainable economic growth.

Finance Minister Amir Khosru Mahmud Chowdhury attended the meeting as a member of the committee, along with Chief Whip Md Nurul Islam, State Minister for Local Government, Rural Development and Cooperatives Mir Shahe Alam, and committee members Md Jalal Uddin, Moinul Islam Khan, Md Shahadat Hossain, Md Saiful Alam, Syed Zainul Abedin, and Md Abul Hasnat. The meeting was also attended by the Secretary of the Financial Institutions Division, the Secretary of the Internal Resources Division, the Acting Chairman of the National Board of Revenue (NBR), senior officials of the Finance Ministry and its divisions, and officials of the Jatiya Sangsad Secretariat.

No formal recommendations or decisions were announced after the meeting.