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, introducing flexible provisions in the monetary scheme.
According to National News Agency Nepal, the review highlighted the policy initiatives taken by the government to foster an industrial atmosphere with good governance, especially in response to the Gen Z protest. The monetary facilitation by NRB is anticipated to ensure a gradual improvement in the national economy.
The report also mentioned Nepal’s BB minus rating in the Sovereign Credit Rating by Fitch Rating this year. Despite the damage to hotels during the September 8-9 protests, the government successfully restored peace and security, reassuring the tourism sector and encouraging the arrival of tourists.
Additionally, the review noted significant progress in hydropower production over the past three months, with a total of 309 MW of electricity added to the national transmission line. Moreover, banks and financial institutions are experiencing excessive liquidity and low interest rates.