Monetary policy aims at economic stability, growth : Governor
KATHMANDU, July 29: Governor of the Nepal Rastra Bank (NRB) Yubaraj Khatiwada has made it clear that the goals of the monetary policy is to maintain overall economic stability of the country, economic growth and price control.
At an interaction on ´Monetary policy and financial sector reform,´ organized here today by the Independent Business News Media and Research, he said monetary policy is focused on strengthening the banks and financial institutions of the country, which are in infant stage.
Stating that commercial banks were directed to increase investment in areas like agriculture, energy, tourism and small and cottage industries, as they create employment opportunities in the country, Governor Khatiwada said bank resources should be mobilized to boost the overall economic growth.
The Governor said arrangement on good governance was made for the security of amounts of the depositors for financial stability and transparency, and explained the provision of no more than two terms for bank board member and chairman.
Informing that preparations were being made for presenting bills in the parliament on banks and financial institutions act, banking crimes and punishment act and foreign exchange regularization act, Governor Khatiwada said discussion were on to formulate act on banning investment in foreign countries.
NRB former Governor Deependra Bahadur Chhetri was of the view that the monetary policy should aim at price control and criticized that the monetary policy of the previous year could not attain its goals. He, however, welcomed the compulsory provision of increase in investment in agriculture and productive sector.
At the program chaired by organization´s Managing Director Hridayaraj Gautam, Nepal Bankers Association Chairman Rajansingh Bhandari said the monetary policy should have been to increase the purchasing power of the general public and complained that the definition of the productive sector in the monetary policy were narrow-minded.
Source: Republica
