New monetary policy will up confidence of private sector, NRB says

The upcoming fiscal year’s monetary policy is being prepared to uplift confidence in the private sector, ensure market vitality and end the country’s economic slowdown, the Nepal Rastra Bank (NRB) said.

During a discussion meeting of the Finance Committee of the House of Representatives (HoR) on Monday, NRG Governor Maha Prasad Adhikari said the coming monetary policy will be supportive of the fiscal policy of the government and will promote confidence in the market.

He said that the monetary policy will contribute to the government’s target of attaining 6 percent of the annual economic growth rate.

“Now, business confidence has lowered. We need to do some positive interventions to uplift this and ensure positive results,” according to the NRB Governor.

On the occasion, the Governor said that the construction and industrial sectors have posted negative growth in recent times.
The Governor said that the economy that suffered due to the COVID-19 pandemic was yet to become vibrant, demand for loan has not increased despite lowered interest rates and the loan has not expanded in the productive sector.

Likewise, Finance Secretary Madhu Kumar Marasini expressed confidence that the monetary policy will be helpful in implementing the government’s policy and programme document and budget.

“The monetary policy should create a favorable environment to attain the targeted economic growth rate through capital mobilization that we have,” Secretary Marasini said.