KATHMANDU, July 22: Nepal Rastra Bank (NRB) is unveiling its monetary policy for fiscal year 2022/23 on Friday.
NRB Spokesperson Gunakar Bhatta said the central bank’s board meeting held on Friday morning approved the monetary policy for the next fiscal year. NRB has scheduled to make public the monetary policy at 4:00 PM today.
Revised interest rate corridor system introduced
NRB Governor Maha Prasad Adhikari, speaking in various public forums in the past few days, hinted that the policy will be contractionary to check money supply being flown into the unproductive sector. Through the monetary policy this time, the central bank is likely to raise the interest rate along with tightening the bolts of monetary tools for the banking sector.
Currently, Nepal has been facing a serious threat of external sector instability — widening trade deficit and worsening current account balance in particular — which has hit the country’s foreign currency reserves. NRB officials said that the central bank’s priority has been focused on these issues rather than accomplishing the government’s ambitious target of high economic growth.
