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NRB’s monetary policy aims 5.5 percent growth rate; inflation to remain at 8 percent


 KATHMANDU: The Nepal Rastra Bank (NRB), central bank of the country, has made public the monetary policy of the current fiscal year (2013/14) with a goal of attaining 5.5 percent growth rate and limiting the inflation to eight percent.

Organizing a press conference in the Capital, Governor of the bank Dr. Yuvaraj Khatiwada made public the monetary policy focusing on the goal of the fiscal budget unveiled recently by the government.

In it, the central bank has cut the cash reserve ratio (CRR) by one percent. Now, the category ‘A’ financial institution has to maintain CRR at 5 per cent, while category ‘B’ and category ‘C’ institutions at 4.5 per cent and 4 per cent respectively. Likewise, the policy has specified statutory liquidity ratio of 12 per cent, 9 per cent and 8 per cent for category A, B and C financial institutions, respectively. The NRB has also decreased the refinancing rate for agriculture, hydro-power and others productive sectors to 5 per cent.

Making public the monetary policies, NRB Governor 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 added.

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.

“The widening trade deficit and fluctuating remittance inflow are the risk factors that may lead us to an imbalance in the Balance of Payment. We have to be, therefore, conscious while we formulate and execute our monetary policy,” Governor Khatiwada added.

Meanwhile the bankers, who have attended the monetary policy release program, said that the policy has addressed some of the issues raised by them. They termed that the policy would ease most of the problems faced by the banking sector. However they said that it would be easier to make the investment in the deprived sector.

For Indian tourists travelling by land:- 72 hours (-ve) C-19 report, CCMC form and Antigen Test at entry point

For Indian tourists travelling by land:- 72 hours (-ve) C-19 report, CCMC form and Antigen Test at entry point

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Information for Indian tourists travelling by land:- 72 hours (-) C-19 report, CCMC form and Antigen Test at entry point
Information for Indian tourists travelling by land:- 72 hours (-) C-19 report, CCMC form and Antigen Test at entry point
Information for Indian tourists travelling by land:- 72 hours (-) C-19 report, CCMC form and Antigen Test at entry point