NRB Aims to Revitalize Economy and Boost Private Sector Confidence with New Monetary Policy

Tue, Jul 9, 2024 10:42 AM on Economy, National, Featured, Latest,

The Nepal Rastra Bank (NRB) is preparing the upcoming fiscal year's monetary policy to restore confidence in the private sector, ensure market vitality, and end the country's economic slowdown. During a discussion with the Finance Committee of the House of Representatives (HoR) on Monday, NRB Governor Maha Prasad Adhikari emphasized that the new monetary policy will align with the government's fiscal policy and support the goal of achieving a 6% annual economic growth rate.

Governor Adhikari highlighted the need for positive interventions to boost business confidence, which has been waning. He noted that the construction and industrial sectors have experienced negative growth recently and that the economy, still recovering from the COVID-19 pandemic, has not yet become vibrant. Despite lowered interest rates, the demand for loans has not increased, and loan expansion in the productive sector remains limited.

Finance Secretary Madhu Kumar Marasini expressed optimism that the monetary policy would support the implementation of the government's policies, programs, and budget. He stressed the importance of creating a favorable environment for achieving the targeted economic growth rate through effective capital mobilization.