July 11: Nepal Rastra Bank (NRB) has unveiled the monetary policy for the fiscal year 2018/19. NRB Governor Dr Chiranjivi Nepal unveiled the monetary policy amid a function held at Hotel Radisson in the capital on Wednesday, July 11.
As per the new monetary policy, banks and financial institutions (BFIs) will have to maintain the current spread rate of 5 percent between deposit and credit. BFIs had suggested to the central bank to reduce the spread rate claiming that there wasn’t enough investible capital in the market. However, NRB maintained the same rate between deposit and credit.
While announcing the monetary policy, Governor Nepal said that the government is under pressure to meet the target of 6.5 percent economic growth rate set by the budget announced for the upcoming fiscal year.
The central bank unveiled the monetary policy after analyzing the pros and cons of the budget and the current financial state of the nation.