KATHMANDU, July 23: Nepal Rastra Bank (NRB) has set a target to expand credit flow to the private sector by 11.5 percent in the current financial year 2023/24.
While last year's target was set at 12 percent, only 50 percent of it was achieved. To achieve greater success this year, the NRB has set a slightly more conservative target of 11.5 percent.
In addition to this, the central bank has estimated that the broad money supply will increase by 12.5 percent during this financial year.
To ensure economic stability and resilience, the monetary policy for this year focuses on maintaining foreign exchange reserves that can cover imports of goods and services for at least seven months.
In line with the government's budget suggestion, the monetary policy has also adopted measures to prevent inflationary pressures resulting from monetary expansion and aims to keep inflation within 6.5 percent.
Furthermore, the NRB is actively working to encourage foreign investment in the country. The monetary policy includes provisions to make legal facilitations and necessary amendments to the NRB foreign investment and foreign loan management regulations. These amendments are intended to simplify and streamline the foreign investment process, providing a more investor-friendly environment.