Monetary policy cautiously flexible: NRB

01 December, KATHMANDU: The central bank has continued a cautious flexibility of the monetary policy through its first quarterly review of the current fiscal year. Nepal Rastra Bank made public the first quarterly review (monetary) of the fiscal year, 2082/83.

It has brought flexible provisions in the monetary scheme.The review stated that policy initiatives the government took for industrial atmosphere with good governance in the wake of Gen Z protest and the monetary facilitation the NRB made are expected to ensure gradual improvement in national economy.

Nepal got BB minus in the Sovereign Credit Rating (by Fitch Rating) this year as well. Although the hotels were damaged during the September 8-9 protest, government recovered the peace and security situation, thereby assuring the tourism and arrival of tourists, the monetary policy review stated.

The hydropower production has seen continuous strides in the past three months. Total 309 MW electricity was linked to the national transmission line in the last three months alone.The banks and financial institutions have excessive liquidity and low interest rate.