Nepal Rastra Bank Unveils Monetary Policy
Summary
Nepal Rastra Bank has unveiled its monetary policy targeting inflation control at 5.5%, credit expansion of 11% to the private sector, and broad money supply growth of 14%. The policy introduces specialized banking, flexible branch operations, digitalization, and measures for better loan management.
Key Points
- Nepal Rastra Bank announced a monetary policy targeting 5.5% inflation and 11% credit expansion to the private sector.
- The policy promotes specialized banking by reclassifying banks and financial institutions based on size and nature.
- Banks will be encouraged to digitize services and reduce operating costs, with flexible branch opening and closing procedures.
- Interest rates and liquidity ratios, including the policy rate at 4.50%, remain unchanged, with instruments to support affordable loans and liquidity management.
