New Monetary Policy Will Boost Private Sector Confidence: NRB « Khabarhub

Nepal Rastra Bank/Archive photo.

KATHMANDU: Monetary policy for the coming fiscal year is aimed at boosting confidence in the private sector, ensuring market vitality and ending the country’s economic slowdown, Nepal Rastra Bank (NRB) said.

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

He said monetary policy would help the government achieve its goal of achieving a 6 percent annual economic growth rate.

“Now business confidence has gone down. We need to take some positive interventions to boost it and ensure positive results,” the NRB governor said.

On this occasion, the governor said that the construction and industrial sectors have recorded negative growth in recent times.

The governor said the economy, battered by the COVID-19 pandemic, has not yet recovered, demand for loans has not increased despite lower interest rates, and lending has not increased in the manufacturing sector.

Similarly, Finance Secretary Madhu Kumar Marasini expressed confidence that monetary policy would help in implementing the government’s policies, policy document and budget.

“Monetary policy should create an enabling environment to achieve the targeted rate of economic growth through capital mobilization, which we already have,” said Secretary Marasini.

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