FNCCI Submits Monetary Policy Suggestions to Boost Private Sector Confidence

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has submitted its recommendations for the monetary policy of the upcoming fiscal year. The federation emphasized that the new monetary policy should not just be used as a simple tool to lower interest rates. Instead, they urged that it must focus on mobilizing stagnant capital to revitalize the country's economy.

The business community stressed that the upcoming policies need to show practical results in the actual market rather than just existing as paperwork. The federation highlighted that the ongoing economic slowdown cannot be fixed by low interest rates alone. They pointed out that despite banks having plenty of investable funds, overall demand in the market remains very low.

To address these challenges, FNCCI has urged the central bank to introduce supportive measures that can rebuild the confidence of the private sector and encourage new investments. They stated that unless the market experiences a real boost in economic activity, lowering interest rates will not be enough to drive the country's economic recovery.