PRI organizes roundtable on central bank independence

Rajeev Dey
Experts call for reforms to ensure the independence and accountability of Bangladesh Bank
Dhaka, October 21, 2025: The Policy Research Institute of Bangladesh (PRI), in partnership with the United Kingdom’s Agency for International Development, today organized a roundtable on “Central Bank Independence Essentials” at Hotel Amari, Gulshan.by doing
Bangladesh Nationalist Party (BNP) Standing Committee Member and former Commerce Minister Mr. Amir Khosru Mahmud Chowdhury was present as the chief guest on the occasion. He asserted that, “You [institutions] are independent, or not having autonomy is not an option. Without ensuring the independence of Bangladesh Bank, the economy will not function properly. This is not only my personal opinion, but also the official opinion of my political party.”location My party has never undermined the independence of the central bank through political appointments while in power. Bureaucrats, no matter how experienced, are no substitute for specialized expertise in a field like the central bank.” He also emphasized that, “to achieve real effectiveness of the central bank, without question the Financial Institutions Department (FID) must be abolished.”
He presided over the sessionDr. Sadiq Ahmed is the Vice Chairman of PRI. In his opening remarks, Dr. Ahmed said, “A short-term trade-off between inflation targeting and growth as shown in the Phillips curve is not surprising. Governments mainly focus on growth and employment. But an independent central bank will focus on controlling inflation, unlike a central bank under political pressure.”

ResearchThe trigger presentation was presented by Dr. Ashiqur Rahman, Chief Economist, PRI. He pointed out, “The issue of central bank independence has long been a matter of discussion. Theoretical models and experiences of various countries suggest that inflation can be effectively controlled when inflation expectations are kept at a low level, the money supply is properly managed and the exchange rate is stable.Such macroeconomic management is possible only when the central bank enjoys credibility and this credibility derives from its independence. For this reason, since the 1990s, central bank independence has become a dominant doctrine in economic management. When supply shocks occur, their impact is mitigated by a tighter monetary policy. Therefore, economic logic should guide monetary policyNot directed, narrow political interests, which can only happen if we have an independent and capable central bank. As Chanakya said almost two thousand years ago, a wise man learns from his mistakes, but a wise man learns from the mistakes of others. Politicians need to learn from past mistakes in finance and do better in the future.”
economist,A distinguished panel of bankers and industry leaders participated in the discussion. Among them were: Mr. Abdul Hai Sarkar, Chairman of Bangladesh Association of Banks (BAB); Bangladesh Bank Chief Economist Dr. Mohammad Akhtar Hossain; Dr Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD); Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh(LFMEAB) President Mr. Syed Nasim Manzoor; Chairman and CEO of Policy Exchange of Bangladesh Dr. M. Riaz of Masroor; and Mr. Shaukat Aziz Russell, President of Bangladesh Textile Mills Association (BTMA). Panelists emphasized that a truly independent central bank is essential to maintaining investor confidence, reducing inflationary pressures and protecting the economy against financial hegemony.important

Experts call for reforms to ensure independence and accountability of Bangladesh Bank – PRI organizes roundtable on central bank independence
Dhaka, October 21, 2025: The Policy Research Institute of Bangladesh (PRI), in partnership with the United Kingdom’s Agency for International Development, today hosted a talk on “Central Bank Independence Essentials” at Hotel Amari, Gulshan.Organized round table meetings.
Bangladesh Nationalist Party (BNP) Standing Committee Member and former Commerce Minister Mr. Amir Khosru Mahmud Chowdhury was present as the chief guest on the occasion. He asserted, “Whether you [institutions] are independent or not – autonomy is not an option. The economy will not function properly without ensuring the independence of Bangladesh Bank. This is not just my personal opinion, myThe political party is also the official position. My party has never undermined the independence of the central bank through political appointments while in power. Bureaucrats, no matter how experienced, are no substitute for specialized expertise in a field like central banking.” He further asserted, “For the central bank to achieve true effectiveness, the Financial Institutions Department (FID) must be abolished without question.”
of the sessionPRI’s Vice Chairman Dr. Sadiq Ahmed presided. In his opening remarks, Dr. Ahmed said, “There is a short-term trade-off between inflation targeting and growth as shown in the Phillips curve. It is not surprising. Governments mainly focus on growth and employment. But an independent central bank would focus on controlling inflation, under political pressure from the central bank.”In contrast.” Institute
The trigger presentation was presented by Dr. Ashiqur Rahman, Chief Economist, PRI. He pointed out, “The issue of central bank independence has long been a matter of debate. Theoretical models and experience from various countries suggest that inflation can be effectively controlled when inflation expectations are kept at low levels, the money supply is properly managed and the exchange rateremains stable. Such macroeconomic management is possible only when the central bank enjoys credibility and this credibility derives from its independence. For this reason, since the 1990s, central bank independence has become a dominant doctrine in economic management. When supply shocks occur, their impact is mitigated by a tighter monetary policy. Hence, the economic rationaleshould guide monetary policy, not narrow political interests, which can only happen if we have an independent and capable central bank. As Chanakya said almost two thousand years ago, a wise man learns from his mistakes, but a wise man learns from the mistakes of others. Politicians need to learn from past mistakes in finance and do better in the futurewill.”
A distinguished panel of economists, bankers and industry leaders participated in the discussion. Among them were: Mr. Abdul Hai Sarkar, Chairman of Bangladesh Association of Banks (BAB); Bangladesh Bank Chief Economist Dr. Mohammad Akhtar Hossain; Dr Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD); Leathergoods & Footwear Manufacturers & ExportersAssociation of Bangladesh (LFMEAB) President Mr. Syed Nasim Manzoor; Chairman and CEO of Policy Exchange of Bangladesh Dr. M. Riaz of Masroor; and Bangladesh Textile Mills Association President Mr. Shawkat Aziz Russell.