Monetary Policy to revamp collapsing economy to be announced today

The monetary policy for the new fiscal year 2077/ 78 is unveiling today at 3 p.m. This policy is expected to revamp the economy that has been collapsing due to the Covid-19 pandemic.

The monetary policy has been approved in the meeting of the board of directors of Nepal Rastra Bank this morning. It will be made public today at 3 p.m.

NRB says that the monetary policy has been formulated with the current difficult situation into consideration. According to a senior NRB source, the monetary policy includes provisions of restructuring, rescheduling, and capitalizing the loans of entrepreneurs who have been stranded due to Covid-19.

The monetary policy will mainly focus on small, household, and micro-credit in particular.

Most importantly, in order to provide financial stability, NRB has decided not to allow liquidity shortage in the financial market through policy. NRB will also make other policy measures to facilitate liquidity through monetary policy.

Also, NRB will encourage big banks to merge by facilitating the process, but it will not make it compulsory amidst this current situation.