24th November 2024, Kathmandu
Nepal Rastra Bank (NRB) is all set to unveil its first quarterly review of the monetary policy for the current fiscal year. According to Dilliram Pokharel, the Deputy Spokesperson of NRB, the Economic Research Department is currently finalizing the review.
NRB’s Quarterly Monetary Policy Review
The NRB’s Regular Monetary Policy Cycle
NRB typically issues its annual monetary policy within the first 15 days of the fiscal year. To keep pace with evolving economic conditions, the central bank also conducts quarterly and half-yearly reviews. These reviews are mandatory and must be released within 45 days of the respective period’s end.
A Look Ahead: What to Expect
Experts are optimistic about the current economic climate, although concerns remain about sluggish credit flow despite increasing liquidity in the banking sector. The upcoming review is expected to address these issues, potentially introducing new measures to stimulate credit growth.
Investors and stakeholders are eagerly awaiting the review, hoping for some key changes. These include the removal of individual limits on share collateral loans and a reduction in the risk weightage on loans. Such measures would significantly boost economic activity and ease financial constraints for businesses.
A Balanced Approach
While the review is anticipated to introduce some flexibility, it’s unlikely to involve drastic changes. NRB is expected to adopt a cautious approach, making adjustments to the current policy framework to improve the overall economic environment.
As the country’s economic indicators point towards a positive trend, the NRB’s quarterly review is poised to play a crucial role in shaping the nation’s economic trajectory.
For more: NRB’s Quarterly Monetary Policy Review
