DHAKA, Jan 29, 2023 (BSS) - Speakers at a discussion today laid emphasis on formulating Monetary Policy with a proper understanding of the functioning of the market system in the economy.
"Monetary policy needs to be formulated with a proper understanding of the functioning of the market system in the economy. Otherwise, its impact on the economy will be profound," said Dr Ahsan H. Mansur, Executive Director of the Policy Research Institute, as the chief guest at the discussion.
Highlighting India's liberal interest rates, he said there was no challenge in their balance sheets, and inflation was relatively low.
"There needs to be policy coordination in our country. Despite disruptions in global commodity supply management, our country has not taken any measures of its own. The situation could be controlled to some extent by changing the interest rate regularly," he added.
The Institute of Chartered Accountants of Bangladesh (ICAB) organised a Round Table Discussion on Monetary Policy 2022-2023 at ICAB Council Hall, CA Bhavan (8th Floor), Kawran Bazar in the city.
Ferdaus Ara Begum, Chief Executive Officer (CEO) Business Initiative Leading Development (BUILD); Mahbub Ahmed, Former Senior Secretary, Ministry of Finance, Government of the People's Republic of Bangladesh; Dr. Jamaluddin Ahmed FCA, Past President - ICAB; Mohammad Refayet Ullah Mirdha, President, The Economic Reporters' Forum (ERF) and Zakir Hossain, Business Editor, Daily Samakal addressed the discussion. The discussion was moderated by ICAB Council members and Past President Md. Humayun Kabir FCA while ICAB President Md. Moniruzzaman FCA gave an address of welcome.
ICAB Vice Presidents Md Yasin Mia FCA and MBM Lutful Hadee FCA; Council Member and Past President Md. Kamrul Abedin FCA; Council Members Sabbir Ahmed FCA and Fouzia Haque FCA; Chief Executive Officer Shubhashish Bose; and Chief Operating Officer Mahbub Ahmed Siddiqui FCA were present at the event.
Dr Ahsan H. Mansur said unchanged policy interest rates in the country have compounded the problem. In global consideration, the investment rate of the dollar and rupee should be adjusted. Money laundering is rampant in the country. The savings rate has come down to 5.5 per cent, from 16.5-16.7 per cent earlier year. Good governance of the banking system is very important. There should be no inconsistency in monetary policy.
Moderator of the discussion Md. Humayun Kabir FCA quoted an economist as saying that inflation has been caused by disruptions in the global supply chain.
He commented that the current crisis will not go away just by lifting the interest rate cap.