The Bangladesh Bank has been thrust into a state of administrative and policy uncertainty following the abrupt resignation of renowned economist Sadiq Ahmed from the Monetary Policy Committee (MPC). The departure coincided with the sudden postponement of a pivotal meeting scheduled for Wednesday, where the newly appointed Governor, Mostakur Rahman, was expected to push through a reduction in interest rates despite soaring inflationary pressures.
A Pivot in Policy Direction
Upon assuming his role, Governor Rahman signalled a departure from the restrictive monetary stance of his predecessor, Dr Ahsan H. Mansur. The Governor proposed a reduction in the Policy Rate (Repo Rate)—currently standing at 10%—by approximately 25 to 50 basis points. The objective of this move was to lower the cost of borrowing and stimulate credit flow within the economy.
However, the proposal has met with significant internal resistance. Critics argue that easing interest rates prematurely could exacerbate the country’s double-digit inflation, which has already severely eroded the purchasing power of the populace.
The Resignation of Sadiq Ahmed
The resignation of Sadiq Ahmed carries substantial weight. As the Vice Chairman of the Policy Research Institute (PRI) and a former senior official at the World Bank, Ahmed was the sole member of the seven-person MPC nominated directly by the central bank’s Board of Directors.
While official reasons for his departure remain undisclosed, central bank insiders suggest a deep-seated disagreement over the new administration’s “dovish” turn. His exit leaves a critical void in the committee’s expertise at a time when the bank’s credibility is under intense international scrutiny.
The Monetary Policy Committee Composition
The seven-member committee is designed to balance internal central bank expertise with academic and research-led perspectives.
| Position | Name | Affiliation |
| Chairman | Mostakur Rahman | Governor, Bangladesh Bank |
| Member | Md. Habibur Rahman | Deputy Governor |
| Member | Md. Akhtar Hossain | Chief Economist |
| Member | A.K. Enamul Haque | DG, BIDS |
| Member | Ferdausi Nahar | Chair, Dept. of Economics, DU |
| Member | M. Salahuddin Naser | Executive Director, Bangladesh Bank |
| Resigned Member | Sadiq Ahmed | Vice Chairman, PRI |
Indefinite Delay
Dr A.K. Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS), confirmed that members were notified on Tuesday afternoon that the meeting had been cancelled. He noted that the session might be rescheduled until after the upcoming Eid holidays.
The delay suggests a brewing “tug-of-war” between political pressure to lower rates and the economic necessity of controlling inflation. Until a new board nominee is appointed to replace Ahmed, the MPC’s ability to pass significant policy changes may remain hampered.