Inflation control pivotal in new-look monetary policy

Monetary Policy Committee members asked to place opinion forthwith

FE REPORT | Published: January 20, 2025 23:12:38

Inflation control remains pivotal in a new-look monetary policy for the second half of current fiscal that falls under purview of the post-uprising government to manage, as discussed Monday in a preparatory meeting.
The central bank sought individual opinions from the members of the Monetary Policy Committee (MPC) "as soon as possible" for finalizing the monetary measures for another six months, starting from this January, officials said.
The opinions were sought at the meeting of the MPC held at the Bangladesh Bank (BB) headquarters in the capital in a hybrid format with Bangladesh Bank Governor Dr Ahsan H. Mansur in the chair.
At the meeting, Dr Md. Ezazul Islam, an executive director of the BB, gave a presentation on the country's latest macroeconomic situation with focus on inflation, interest rate, exchange rate and liquidity position.
"We'll finalize our next monetary policy statement (MPS) in line with opinions of the MPC members," a BB senior official told the FE after the meeting was over.
He also said the MPC members reviewed the current inflation trend and outlook, economic activities and growth prospects, recent financial- market developments, and developments on the external front.
Members of the MPC Dr Sadiq Ahmed, economist, Dr Md. Habibur Rahman, Deputy Governor of the BB, Professor Masuda Yasmeen, Chairman, the Department of Economics at the University of Dhaka, and Dr Md. Ezazul Islam, Executive Director of the central bank, took part in the meeting.
Another member, Dr Binayak Sen, Director-General of the Bangladesh Institute of Development Studies (BIDS), could not join the meeting due to technical glitch, according to the officials.
The central bank is now working to formulate its upcoming monetary policy with top priority given to curbing the inflation pressure on the economy by keeping exchange rate stable.
The next monetary policy for the second half (H2) of the current fiscal year (FY) 2024-25 is expected to be announced by the last week of this month.
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