Kathmandu, May 27
NRB, Nepal’s central bank, presented its third quarterly review report for the current fiscal year on Friday. Other instruments, such as interest rates, will be utilized to preserve general economic stability by decreasing existing pressures in the internal and external sectors, according to the study.
According to the analysis, interest rates in the market may increase much higher. Dipendra
Bahadur Chhetri, the former Governor of the Nepal Rastra Bank, stated that the review of
monetary policy has suggested that the bank rate would increase and the NRB will employ
other monetary tools.
For the previous few months, banks have stopped raising interest rates. Despite traders’ demands for interest rates to remain within limitations, interest rates within limits are causing challenges in maintaining market economic stability. Governor Maha Prasad Adhikari of the Nepal Rastra Bank has also indicated raising interest rates.
The Nepal Rastra Bank (NRB) has stated that if the capacity to fund imports is stressed as a result of falling inflation and foreign exchange reserves, monetary policy would be tightened.
The policy adopted in the half-yearly review of monetary policy has been sustained, according to the third quarterly review of monetary policy.
If the ability to sustain imports is reduced, the Nepal Rastra Bank (NRB) has stated that it will tighten its hold on imports. The Nepal Rastra Bank (NRB) has also maintained its policy of limiting the refinancing credit available for the recovery of impacted sectors and enterprises as a result of the covid infection to the remaining most affected districts. The provisions have yet to be applied by the NRB in the stock market.
