Kathmandu: Nepal Rastra Bank has announced its decision to continue an accommodative monetary policy stance with the primary goal of bolstering national economic growth.
While unveiling the Monetary Policy for the upcoming fiscal year 2082/83 on Tuesday, Governor Dr Bishwanath Paudel stated that the central bank has opted to keep key monetary rates unchanged, a move informed by a careful assessment of the current economic climate and future financial projections.
In its efforts to stimulate economic activity, the central bank has established a target of 11 percent for private sector credit expansion for the next fiscal year. Furthermore, the growth of the broad money supply is projected to reach 14 percent during this period.
The central bank has maintained total stability within the interest rate corridor, choosing not to alter any of the fundamental rates. As a result, the policy rate, the standing deposit collection facility rate, and the bank rate all remain at their existing levels. In a similar vein, the bank has decided to continue with the current requirements for the Cash Reserve Ratio and the Statutory Liquidity Ratio, while also leaving the provisions for the Standing Liquidity Facility untouched.
Addressing the issue of market liquidity, Governor Paudel emphasized that the central bank will deploy various monetary instruments based on the specific nature and requirements of market conditions. This strategic approach is intended to manage financial flows effectively while ensuring that the banking system remains resilient and capable of supporting the government’s broader economic objectives.
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