Macroeconomic stability, job creation among top 11 priorities of new BB governor
The governor also indicated that the issue of high interest rates would be reviewed in the context of boosting investment. At the same time, he underscored the need to ensure price stability and keep inflation under control.
Highlights
- Focus on investment-driven growth while maintaining macroeconomic stability
- Emphasis on inclusive growth to boost employment generation
- Plan to revive closed factories and business establishments
- High interest rates to be reviewed to encourage investment
- Strong focus on price stability and inflation control
- Commitment to strengthening good governance in the banking sector
- Objective-based decision-making in regulatory matters
- Rule-based management system to be enforced in banks
- Greater delegation of authority to speed up work
- Closer coordination with other government agencies
- Maintaining and enhancing BB's institutional credibility
Newly appointed Bangladesh Bank Governor Mostaqur Rahman has set 11 priority areas, including lowering bank lending rates to create an investment-friendly environment and ensuring inclusive growth to generate employment.
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After joining office this morning (26 February), the governor fixed these priorities at a meeting with senior officials. Bangladesh Bank announced the agenda in a press release later in the afternoon.
The statement said the central bank would attach highest importance to increasing GDP growth while maintaining macroeconomic stability. It will work to inject momentum into the economy by reopening closed factories and commercial enterprises, alongside placing emphasis on controlling inflation.
It also said steps would be taken to ensure good governance in the banking sector, make decisions objectively, and implement rule-based management across banks.
The governor has prioritised increasing delegation of authority to speed up work, coordinating with other government agencies, and upholding the image of Bangladesh Bank.
Earlier, central bank spokesperson Arif Hossain Khan presented the governor's remarks to journalists. He said emphasis would be placed on increasing employment while maintaining macroeconomic stability. Bangladesh Bank would assist initiatives to reopen factories that shut down following the political transition.
Quoting the governor, the spokesperson said necessary policy support would be provided to make the economy growth- and employment-oriented. Steps would be taken to reduce interest rates.
He also praised the previous governor's efforts to maintain macroeconomic stability and said momentum would be restored to the economy on that foundation. He mentioned strengthening policy support, incentives and coordination within the banking sector to reopen industries that have closed over the past year and a half.
The spokesperson added that controlling inflation and keeping commodity prices stable within the purchasing power of ordinary people would be a priority. High interest rates that are creating obstacles to investment would be reviewed and necessary measures taken.
To ensure institutional good governance, the governor said the decision-making process would be rule-based and non-discriminatory. He also spoke of expanding delegation of authority to increase the responsibilities and decision-making powers of officials at different levels.
Silent before media on first day
At 10:40 am today, the newly appointed Governor arrived at the main building of Bangladesh Bank. Dozens of television cameras were trained on him. After stepping out, he walked up the stairs towards the building.
Although several reporters surrounded him, he declined to take questions and briefly said, "I have just arrived. Let me start work, then we can talk."
He then proceeded towards the lift, accompanied by deputy governors and security officials who escorted him to his office.
He held a meeting with all deputy governors and executive directors. He personally went around shaking hands and listened to the views of several officials.
Officials present at the meeting told TBS that the governor reminded them that the central bank is a regulatory institution, and as a regulator, the less it speaks to the media, the better. Any statement from the central bank – positive or negative – has an impact on society, he said.
According to officials, his key message was: "Less talk, more work." He also told them, "If you face any kind of pressure from outside, inform me. We will not work based on anyone's pressure."
He said the old traditions of the central bank would be restored and the image of the institution rebuilt.
On the economy, the governor said, "If we want growth in the economy, we must bring down interest rates. We will also gradually take measures to reduce inflation."
At around 1:50pm, the governor left the main building for the Secretariat. When two journalists waiting downstairs sought comments, he got into his car without making any remarks and left the central bank. At the Secretariat, he met Finance Minister Amir Khasru Mahmud Chowdhury.
