NRB unveils monetary policy

KATHMANDU, JUL 21 - The Nepal Rastra Bank (NRB) has made public the monetary policy of the current fiscal year with a goal of limiting the inflation to eight percent while being focused on investment promotion.

The monetary policy made public amid a press meet organised by the NRB here in Capital on Sunday focused on the goal of the fiscal budget unveiled recently by the government which aims to achieve 5.5 percent economic growth.

Making public the monetary policies, NRB Governor Yubaraj Khatiwada said caution was adopted in the monetary policy so as not to allow increase of trade deficit and to reduce the price hike.

The policy is aimed at achieving targeted economic growth by bringing in more loans in the productive sectors including agriculture, energy and industry, he said.

The monetary policy has bank interest rate at 8 percent and  the  compulsory cash ratio for banks and financial institutions is maintained at 5 percent for Class A , 4.5 percent for B and 4 percent for Class C.

Arrangement will be made for 20 percent loan flow in productive sector of the total loans including 12 percent in agriculture and energy until Ashad, 2072 BS.

Arrangement will be made for providing zero percent interest rate for up to Rs. 2 million loans from the NRB, while opening new branch by Class D micro finance in the districts having less access of micro finance, said Khatiwada. RSS

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