BB Governor speech on macroeconomy!

Dr. Atiur Rahman, Bangladesh Bank Governor made a presentation at FICCI focusing on 'Current Economic Situation of Bangladesh.' Because it is rare to listen from our policymakers on major economic issues with good substances, the speech of BB Governor should be taken seriously while tracking the path of economic situation.

Here is the first part of his speech published in the Financial Express.

Comment:

In most of speech, he said, what he has done (or, he could do) as a Governor of a central bank. He said rightly on the exchange rate issues when the central bank quietly had to intervene to stop the dramatic pace of currency depreciation. And the foreign exchange market is currently enjoying a stability.

One issue he didn't say right.  As he says, ''the central bank will also encourage all commercial banks to maintain market-determined lending and deposit rates to facilitate monetary transmission and properly price risk.'' To be honest, the central bank never did so and won't be able to do so until it is not confident enough about the efficiency and competitiveness of the banking system in the country. It seems that he was misguided on this issue