These are the seven goals of monetary policy
Nepal Rastra Bank has established a monetary policy structure and aim to maintain foreign exchange reserves sufficient to cover imports of goods and services for at least seven months.
KATHMANDU: Seven separate goals have been established in Nepal Rastra Bank’s monetary policy for the current fiscal year 2080/81, which was declared today.
Nepal Rastra Bank has established a monetary policy structure and aim to maintain foreign exchange reserves sufficient to cover imports of goods and services for at least seven months.
The Central Bank indicated today that provisions have been taken to support foreign currency reserves in its monetary policy for the current fiscal year.
Similarly, the policy rate will be determined by the foreign currency reserve based on the ability to fund imports and the yearly goal of inflation. As a monetary policy lever, the fixed exchange rate of the Nepali currency with the Indian rupee has been maintained.
As the operating aim, the weighted average interest rate on interbank transactions of banks and financial institutions has remained constant. By actively undertaking open market transactions depending on the status of operational goals, monetary policy attempts to keep the interbank interest rate within the interest rate corridor.
Similarly, it strives to control the monetary system so that monetary expansion does not put pressure on prices, and to keep the inflation rate within 6.5 percent.
The central bank has prioritized directing financial resources to the productive sector in order to contribute to the government’s annual budget statement for the current fiscal year’s aim of 6% economic growth.
Similarly, in the current year, the detailed money supply is projected to increase by 12.5 percent and loans from banks and financial institutions to the private sector by 11.5 percent.
