Bangladesh Bank Considers Shorter Monetary Policy Cycle as Hasnat Proposes Quarterly Review

Dhaka, July 26, 2026 — A proposal to announce Bangladesh Bank's monetary policy every three months, instead of the existing six-month cycle, was raised at the first meeting of the parliamentary standing committee on the Ministry of Finance. 🏛

👥 NCP MP Hasnat Abdullah proposed both shortening the cycle and forming a committee to oversee monetary policy at the meeting held at the parliament complex. Hasnat later confirmed the matter while speaking to media. 🤝

📊 Current Monetary Policy Framework

• 📅 Current cycle: Bangladesh Bank issues Monetary Policy Statement (MPS) every 6 months
• 🏛 MPS purpose: Outlines measures to support government policies for inclusive growth and poverty reduction while maintaining price stability
• 📈 Proposed change: Shift to 3-month cycle for more responsive policy adjustments
• 🔍 Additional proposal: Form a committee to oversee monetary policy

👥 Bangladesh Bank Governor's Response

🏛 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 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. 📈

👥 Meeting Attendees

🏛 The meeting was chaired by Committee Chairman Mushfiqur Rahman MP. Bangladesh Bank presented a detailed paper on "Bangladesh Bank and Monetary Policy." 📋

👥 Key attendees included:

• 🏛 Finance Minister Amir Khosru Mahmud Chowdhury
• 🏛 Chief Whip Md Nurul Islam
• 🏛 State Minister for Local Government Mir Shahe Alam
• 👥 Committee members: Md Jalal Uddin, Moinul Islam Khan, Md Shahadat Hossain, Md Saiful Alam, Syed Zainul Abedin, Md Abul Hasnat
• 👥 Officials from Financial Institutions Division, Internal Resources Division, NBR acting chairman, and Jatiya Sangsad representatives

📈 Significance for Bangladesh Economy

🌏 A shorter monetary policy cycle would allow Bangladesh Bank to respond more quickly to economic changes, particularly inflation and currency fluctuations. 📉 This is especially important as Bangladesh faces multiple economic challenges including declining exports, rising defaulted loans, and energy shortages. ⚠

📊 The shift toward inflation-targeting would align Bangladesh with modern central banking practices used by developed economies, where central banks adjust interest rates based on inflation targets rather than broader economic objectives. 💻