FinMin pledges to resolve issue of high bank interest rates through new monetary policy

Published On: April 27, 2023 07:41 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 27: Finance Minister Prakash Sharan Mahat has assured that the issue of high bank interest will be addressed through the upcoming monetary policy.

In his address to a province-level interaction on the formulation of budget and revenue policy for the upcoming fiscal year here today, the minister said the interest rates would be reduced through the monetary policy.

“The private sector knows about the causes of the present economic slowdown,” he said, adding that a liberal monetary policy was necessary to address the problem of high interest rate. As he shared on the occasion, he has already advised the Nepal Rastra Bank (NRB) to proceed towards that end. “The NRB has taken the matter seriously and I am hopeful of a solution.”

Stating that the central bank was an independent body and it had in one circumstance tightened the monetary policy, he said, “Now it is urgent to act liberally.” 

He took time to stress the need for increasing capital expenditure and resolving issues like delayed contract process and site clearance causing hurdles in accelerating the development projects. “Efforts for increasing the capital expenditure should be made from the very first day of the fiscal year,” the minister said.



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