The National Bank is preparing to issue the monetary policy after it is passed by the meeting. It is said that a press conference will be held at 4:15 pm.
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Nepal Rastra Bank is going to bring the monetary policy for the coming fiscal year today . The management committee meeting is currently in session, while a board meeting has been called soon . The Rastra Bank is preparing to issue the monetary policy after it is passed by the meeting . It is said that a press conference will be held at 4:15 pm
The structure of the new monetary policy will be different from the previous ones, as per the new structure. This year, three parts will be released separately, namely, a review of the monetary policy for the current fiscal year, the current situation of the international and national economy, and the monetary policy. The Rastra Bank is preparing to have Governor Bishwanath Poudel read only the part (part) of the monetary policy online and then hold a press conference
In the past policies, the review of the monetary policy for the current fiscal year, the current situation of the international and national economy, monetary policy and regulatory aspects were all included in a single policy. Officials of the Nepal Rastra Bank claim that they are breaking this tradition and are making the monetary policy simpler and more objective.
The monetary policy will include policy arrangements to facilitate the flow of credit accumulated in banks and financial institutions. The budget has set a target of achieving 7 percent economic growth in the coming fiscal year and limiting the inflation rate to 6 percent. The Nepal Rastra Bank has also prepared to facilitate the flow of credit to help achieve these budget targets.
The review of the monetary policy and the current situation of the international and national economy have been passed by the board of directors meeting last Sunday. Now, the Nepal Rastra Bank is preparing to make it public after the meeting to be held today makes a final decision on some policy issues and rates.
As there will not be as many policy arrangements as in the past, and regulatory arrangements will also be issued as per the need by the National Bank throughout the year, regulatory matters will not be included in the monetary policy today.
Sources claim that discussions are still ongoing on issues such as how much policy rate to keep in the upcoming monetary policy, whether or not to use the interest rate corridor, and discussions on this will begin from Monday. Although there is currently more than 1.3 trillion investable amount in banks and financial institutions, almost half of the 20 commercial banks are under pressure from the capital fund. Even though the demand for credit is increasing in the market, they are not in a position to expand further credit. Sources have said that some policies will also be introduced to facilitate this problem of banks.
However, sources claim that the issue should be addressed at any cost since facilitation in credit flow is necessary to achieve the 7 percent economic growth set by the government. It will only include rates such as the cash reserve requirement ratio (CRR), interest rate corridor, bank rate, policy rate, and loan-to-deposit ratio.
