Business leaders on Thursday expressed concern over the detrimental impact of frequent policy changes by the central bank on their operations, advocating instead for the implementation of stable, long-term policies to facilitate smoother business proceedings.

Representatives from various business associations, led by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), convened with Bangladesh Bank Governor Abdur Rouf Talukder to address recent policy adjustments.

On May 8, in response to pressure from the International Monetary Fund, the Bangladesh Bank implemented three significant measures: a Tk 7 increase in the dollar rate to Tk 117, the removal of policy rate determination for interest rates from the SMART system in favor of market-based mechanisms, and a 10 per cent elevation of the maximum limit for policy rate hikes to augment borrowing costs from banks.

Following the meeting, FBCCI President Mahbubul Alam highlighted to reporters the challenges faced by businesses when planning projects, citing the volatility introduced by fluctuations in interest rates and exchange rates.

He underscored that abrupt policy changes lead to financial losses for businesses, hindering effective strategic planning, and urged the central bank to adopt a consistent, long-term approach to policy formulation.

The central bank provided assurances that such abrupt changes would be avoided in the future and pledged to engage stakeholders in discussions prior to policy adjustments.

Mahbub also relayed the assurance from the governor that despite adjustments to interest rates, the rate would not surpass 14 per cent, with favorable terms available for reputable borrowers.

He noted a prevailing dollar crisis in the market, resulting in adverse effects for businesses due to sudden spikes in the dollar rate.

The governor reassured attendees that the dollar rate would stabilize at Tk 117, with minimal variance between the open market and bank rates. Additionally, it was affirmed that market conditions would normalize by December of the current year.

In attendance at the meeting were former FBCCI President Md Jashim Uddin, FBCCI Senior Vice President Md Amin Helaly, Vice President Md Munir Hossain, Dhaka Chamber of Commerce and Industries President Ashraf Ahmed, Metropolitan Chamber of Commerce and Industry President Kamran T Rahman, BGMEA President SM Mannan, BTMA President Mohammad Ali Khokon, BKMEA Executive President Mohammad Hatem and PRAN-RFL Group CEO Ahsan Khan Chowdhury, among others.