The Confederation of Nepal Industry expects the monetary policy of the financial year 2082/83 to increase economic activity. According to the confederation, the announcement to modify the current capital loan guidance in the monetary policy based on the nature of the industry business and the loan repayment-income cycle is positive.

The confederation has suggested that it should be modified so that it is also for the manufacturing industry, construction sector and other businesses that require current capital loans. The confederation has positively taken those who study and review the classification of existing loans and the loan loss system, and adopt a policy of providing loans based on the customer's credit score.

It is said that loans of up to 30 million for industrial businesses around Hulaki Highway and Madhyapahari Lokmarg will be given at a 2 percent premium on the interest base rate and such loans will be allowed to be counted as loans in the designated area for small and medium enterprises. The statement of the confederation states, "This will help small and medium entrepreneurs who take loans of up to 30 million to face the existing difficult situation." According to the Confederation, the system of allowing loans of up to 100,000 to be counted as poor class loans will provide some relief to banks under capital pressure for further investment. 

"We believe that the provision that banks and financial institutions can invest in debentures issued by established institutions to invest in infrastructure will partially help to improve the lack of investment in infrastructure," the statement said, "It is said that microfinance will review the restriction imposed on the distribution of more than 15 percent profit (cash or bonus) . This will increase the amount of money (cash profit) going to the investors and will help in increasing the demand even if it is a little.

monetary policy has absorbed the fact that the share of the private sector in the total fixed capital formation is decreasing. Due to contraction in market demand, private sector investment is also shrinking . The Confederation believes that the National Bank will come up with instructions/guidelines to increase demand by improving consumer morale and encouraging private investment in capital formation. 

The upper limit and lower limit of the interest rate corridor and the policy rate have been reduced from 6.5 to 6, from 3 percent to 2.75 and from 5 to 4.5 percent, respectively. "It seems that interest rate will not be allowed to go up and it will help to reduce more than the current level and increase credit demand," the statement said, "As the National Bank is supposed to issue bonds, it will give investors an option when the market is relaxed and the investment options are narrowed." We believe that it will also help in the structural liquidity management in the banking system.

It is said in the monetary policy that banks and financial institutions can give credit by giving high priority to the analysis of the borrower's projects, knowledge, skills and abilities while being self-regulated. At a time when the central bank is being accused of focusing on micro-management more than the specific purpose, the confederation said that by allowing the banks to self-regulate and grant loans at their own discretion, the National Bank has positively taken the signal that the National Bank will pay attention to supervision.

The monetary policy calls for raising the bank loan limit for construction/purchase of private residential houses from Rs 2 crore to Rs 3 crore, loan-to-value ratio for first-time home buyers at 80 per cent and for other home loans at 70 per cent . According to the Confederation, it will help to improve the market psychology and increase the demand for the construction sector and construction materials and this will also have a positive effect on the revenue collection of the government.