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Mahaprasad Adhikari, Governor of Nepal Rastra Bank, has said that despite the decrease in the bank's interest rate, the demand for loans has not increased. The Governor's official said this while speaking at the Finance Committee under the House of Representatives on Monday. He mentioned that the demand for loans has been low even though the bank's interest rates have decreased recently.
Even though the interest rate of loans in banks is decreasing, there is no solid demand for loans. If there is demand, it is less in the productive sectors. Currently, we are sitting down to make a monetary policy amid some challenges in the economy," Governor Adhikari said, "We have changed the tight monetary policy to a flexible monetary policy. Nepal's policy rate is low in South Asia. While Pakistan's 20 percent, ours is 5-5 percent.'
Governor Adhikari said that there is laxity in the economy and coordination of all is necessary for 'recovery' and also said that Nepal's 'policy rate' is low in South Asia. He mentioned that the Economic Committee will also play a role in solving structural problems in the economy.
'There is slack in the economy. For that, everyone's coordination is necessary. There are structural problems in the economy. Tear them up. The National Bank has left the market to decide the interest rate. The liquidity situation in the market determines the interest rate. The market should be accepted by industrialists and traders or the National Bank. The National Bank will increase quality loans. If you give money, there are as many people as you can get. He said that by providing loans to the productive sector, the loans to create jobs will be increased.
Finance Ministry Secretary Madhukumar Marasini said that the target is to achieve economic growth of 6 percent through the budget of the next financial year 2081-082. He opined that monetary policy should be implemented to support the implementation of the policies and programs mentioned in the budget. He also expressed the belief that the monetary policy will maintain economic growth of 6 percent and inflation of 5-5 percent.
He was of the opinion that since everyone accepted the economic growth of 6 percent taken by the government, the monetary policy should prepare the 'playing field' to achieve the government's goal of economic growth.
