Private sector welcomes new monetary policy 

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has reacted positively to the monetary policy for the current fiscal year 2024/25.

Discussing the monetary policy unveiled by Nepal Rastra Bank on Friday, FNCCI President Chandra Dhakal said the concerns raised by the private sector and its submission to the NRB were addressed in the monetary policy. However, he added that the implementation of the monetary policy depends on the nature of circulars to be issued by the central bank.

He observed that the target of 12.5% loan expansion for the current fiscal year, the reduction of bank rates and policy rates, the flexibility in the management of guidelines for current capital loans, and the adoption of lax policies for the management of capital funds for banks and financial institutions (BFIs) are positive aspects of the monetary policy.

Meanwhile, the Nepal Chamber of Commerce (NCC) has said the new monetary policy is relatively flexible. However, it noted that some issues remained unaddressed by the policy.

Issuing a press statement on Friday, the NCC welcomed the move to reduce the bank rate and the policy rate. Through the policy, the central bank reduced the bank rate from 7% to 6.5% and the policy rate from 5.5% to 5%. According to the NCC, this provision helps reduce interest rates.

Likewise, the NCC added that the provisions meant for promoting the real estate business are also positive.