A former director of the central bank board Sunday warned that the cautious monetary policy being pursued to control inflation might hinder investment growth. Latifur Rahman, also president of the Metropolitan Chamber of Commerce and Industry, said that the Bangladesh Bank’s policy, influenced by the suggestion of International Monetary Fund, might have a negative impact on the country’s investment.

The central bank should take measures to reduce interest rates and encourage investments, he suggested, while speaking at a workshop on ‘Understanding the UCP 600’ at the Bangladesh China Friendship Conference Centre on Sunday. Rahman, also the vice-president of International Chamber of Commerce, Bangladesh (ICC,B), said existing interest rates, which are much higher than in neighbouring countries, made Bangladesh vulnerable in the competitive global market.

‘In the present situation, all of you agree that there is strong case for further lowering interest rates than raising those,’ he said. About 150 participants from apparel and knitwear industries attended the workshop organised jointly by ICC,B and GTZ to update local business executives on Uniform Customs and Practice 600, the revised ICC’s official rules for documentary credits. He suggested that the central bank should reduce the bank rate and at the same time government should take appropriate fiscal and other policy measures to encourage higher capacity utilisation and more investment.

BGMEA president Anwar-ul-Alam Chowdhury said that commercial executives in the RMG sector must be aware of latest international trade rules. BKMEA president Fazlul Hoque urged the ICCB to establish a dispute settlement body to handle increasing disputes in international trade with Bangladeshi counterparts.