First quarterly review of monetary policy cannot maintain financial stability: NCC

KATHMANDU: The arrangements made by Nepal Rastra Bank (NRB) through the quarterly review of the monetary policy cannot maintain financial stability, according to the Chamber of Commerce (NCC). The NCC has said the quarterly review along with the tight monetary policy cannot address the problems in the financial sector. In a press statement, NCC said it expected that the quarterly review of monetary policy would address the internal economy which remained at risk though some improvements were seen in the external sector. The latest arrangement of the central bank does not help to make the economic activity sustainable, NCC stated. The chamber has asserted that the spread rate which has been reduced to 0.4% will not increase the interest rate for some time. However, there is very less possibility of reducing the current high-interest rate. The NCC has also urged NRB to maintain the premium charged by the banks and financial institutions on loan disbursement at the base rate only to a maximum of 2%. The Chamber has further urged the central bank to reduce the current 8.5% bank rate to 5%. Similarly, the chamber has also requested to suspend the implementation of the guidelines related to working capital loans and rewrite them after discussing with the relevant agencies. READ ALSO:

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