NRB Governor Adhikari releasing the first monetary policy after his appointment as the head of the central bank
KATHMANDU, July 17: Nepal Rastra Bank (NRB) is unveiling the monetary policy for the current fiscal year 2020/21 today.
NRB Governor Maha Prasad Adhikari will release the monetary policy for the current fiscal year 2020/21 at 3 PM. Governor Adhikari is scheduled to release the monetary policy through a live telecast from state-owned Nepal Television. The central bank is not holding a press briefing to release the monetary policy citing social distancing measures introduced to contain the spread of COVID-19.
Revised interest rate corridor system introduced
The monetary policy will focus primarily on addressing the economic and financial crisis triggered by COVID-19 and containment measures introduced by the government to contain the spread of coronavirus, according to NRB officials.
The private sector has been expecting relief from the central bank through its monetary policy.
Among others, the central bank is reportedly extending the moratorium on loan repayment for borrowers, particularly businesses, battered by COVID-19.
The central bank will also announce its plans to restructure and reschedule loans for businesses hit hardest by the pandemic. In line with the announcement in the budget speech, the NRB is increasing its refinance fund to Rs 150 billion.
Through this refinance fund, businesses and industries which have been adversely impacted by coronavirus will be able to receive concessional loans.
Similarly, the central bank is also announcing measures aimed at injecting adequate liquidity, lowering interest rates and strengthening financial stability.
This will be the first monetary policy from Governor Adhikari who was appointed as the head of the central bank on April 6.
